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Social Benefits, Public Expenditure, Government Purchases?

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Akeron
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Post: #1
Social Benefits, Public Expenditure, Government Purchases?

Social benefits ratio 12.11 % 11.92 %
Government purchases 1,276.94 Bil. € 1,417.58 Bil. €
Public expenditure 2,257.09 Bil. € 2,959.31 Bil. €
Gross domestic product (GDP) 7,688.28 Bil. € 8,850.44 Bil. €

How do these numbers connect with each other? o.O


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04.10.2017 00:22
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MrProper
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Post: #2
RE: Social Benefits, Public Expenditure, Government Purchases?

Problem with data from the average state is - as mentioned before here - that all together it does not necessarily makes sense, simply due to the way this data collected and calculated. Hence, I always think it's only good for individual, value based comparison ("My social benefits are higher than in the average state.") instead of systematic, multi-value based conclusions ("My social benefits are higher, therefore I have a higher public expenditure. One of them is higher than in the average state, but the other is not. Hence my ... and ... also ...").

Nonetheless, I try to make some sense out your data (assuming I understand your doubts correctly): The social benefits ratio is higher than in the average state, probably because of the high subsidies your state pays. All the other values are below average, which makes sense given that the real GDP is relatively low. In difference to the ratio, all absolute values are also subject to inflation and economical growth, which means they do not tell much alone.

I hope I got it right; Let me know if you meant something else.


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04.10.2017 15:29
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Akeron
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Post: #3
RE: Social Benefits, Public Expenditure, Government Purchases?

Eh... I wasn't really focusing on the average data here.

I was just trying to figure out what they really stand for. Government purchases don't equal public expenditure, and social benefits ratio doesn't seem to connect to a real percentage of anything.


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05.10.2017 23:36
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MrProper
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Post: #4
RE: Social Benefits, Public Expenditure, Government Purchases?

Social benefits is likely a slightly wrong translation of the original german term. It refers to transfer payments, and should be composed of child benefit payments and welfare at least, but may include subsidies as well. In principal, it should cover every payment made by the government where nothing is expected in return. However, I am not sure which variable is used to calculate the ratio. It could be public expenditure, but I may be wrong about that.

Public expenditure in turn is simply the sum of the individual PE's of your state. Public expenditure itself is composed of two components, government investment and government purchases (also known as government consumption, so production of goods and services payed by the government). Government purchases are also considered in the calculation of the GDP, since the later one is the sum of the entire goods and services produced in a country.


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This post was last modified: 07.10.2017 12:19 by MrProper.

07.10.2017 08:52
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hamma13
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Post: #5
RE: Social Benefits, Public Expenditure, Government Purchases?

MrProper Wrote:
Social benefits refer to transfer payments, and should be composed of child benefit payments and welfare at least, but may include subsidies as well. In principal, it should cover every payment made by the government where nothing is expected in return.

PE Basic income and (probably) PE Pensions are included as well.

MrProper Wrote:
However, I am not sure which variable is used to calculate the ratio. It could be public expenditure, but I may be wrong about that.

I am pretty certain it is GDP for all four ratios/rates under Overview/Key data.

MrProper Wrote:
Public expenditure itself is composed of two components, government investment and government purchases (also known as government consumption).

Three. Cgov, Igov and transfer payments.

MrProper Wrote:
Government purchases are also considered in the calculation of the GDP, since the later one is the sum of the entire goods and services produced in a country.

So are government investments as part of Gross investment.

@Akeron:
GDP = C (Private consumption) + I (Gross investments) + G (Government purchases) + Exports - Imports
This is the "European" connotation. In the US it would be:
GDP = C (Private consumption) + I (Private investments) + G (Government purchases and investments) + Exports - Imports

This post was last modified: 08.10.2017 11:08 by hamma13.

08.10.2017 10:57
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Akeron
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Post: #6
RE: Social Benefits, Public Expenditure, Government Purchases?

OK. Thanks guys.


Why return? That's a good question.
08.10.2017 14:10
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