Public expenditure/Related Articles

Glossary

• Adverse selection [r]: a partial market failure that occurs when there are traders who take advantage of asymmetric information, raising uncertainty and leading to a reduction in the value of its products. ^[e]
• Asymmetric information [r]: a situation in which a seller has information that is not available to potential buyers - or vice-versa. ^[e]
• Crowding out [r]: A fall in private sector investment resulting from an increase in government borrowing. ^[e]
• Externality [r]: A cost of production that is not borne by the producer, or a benefit that the producer does not receive. ^[e]
• Multiplier effect [r]: ^[e]
• Samaritan's dilemma [r]: The adverse motivational effect of the expectation of assistance such as the motive to relax precautions against insured risks. ^[e]
• Subsidy [r]: A government grant to a supplier of goods or services, usually for the purpose of reducing prices, raising the supplier's income, or increasing the supplier's employment. ^[e]
• Transfer payment [r]: Money transferred from one party to another, without the exchange of a good or a service. ^[e]