Analytical approaches to stabilization and adjustment by Cadman Atta Mills

By Cadman Atta Mills

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Private savings (Sp at the intersection of row 8 and column 4) is the item that balances the current expenditures of households (CEXPp) and household income (Yp). Note that property incomes paid and received by resident households do not appear as separate entries in the matrix. As pointed out above, property incomes received by resident economic agents from other resident economic agents are accounted for in the Page 14 operating surpluses of producing units. In any case, they must, of necessity, cancel each other out.

Assuming that government borrowing from external sources is restricted in some way, for example, through an International Monetary Fund (Fund) conditionality, or problems related to creditworthiness, then crowding out can occur either through the government's direct borrowing from the private sector or through borrowing from the monetary system. The latter, of course, assumes that there is a Page 20 ceiling on the overall credit of the monetary system, which is often the case in Fund and other antiinflationary programs.

According to him pollution costs can be of two kinds: pollution damage costs (DC) and pollution abatement costs (PA). Examples of pollution damage costs (DC) are expenditures for cleaning polluted water for human consumption or industrial use (in any specific industry); purchasing water filters, air filters, noise protectors; costs due to pollution related diseases, and so on. Pollution abatement costs (PA) are expenditures incurred by industry or a government agency to monitor pollution levels, pay for equipment to reduce exhaust gases from automobiles, and so on.

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