structural deficit

(noun)

The portion of the public sector deficit which exists even when the economy is at potential; government spending beyond government revenues at times of normal, predictable economic activity.

Related Terms

  • aggregate demand
  • cyclical deficit
  • business cycle

Examples of structural deficit in the following topics:

  • Effect of a Government Budget Deficit on Investment and Equilibrium

    • The consequences of a budget deficit depend on the type of deficit .
    • The structural deficit is the deficit that remains across the business cycle because the general level of government spending exceeds prevailing tax levels.
    • Structural deficits are permanent, and occur when there is an underlying imbalance between revenues and expenses.
    • Unlike the cyclical budget deficit, a structural deficit is the result of discretionary, not automatic, fiscal policy.
    • Although both types of government budget deficits are typically expansionary during a recession, a structural deficit may not always be expansionary when the economy is at full employment.
  • Management mistakes and the incompatibility of growth strategies and organizational structure

    • Firms which are still small and striving to grow should choose team structures, or, if necessary, tight centralization as a structure for their organization so that they can handle knowledge management, and decision coordination and implementation better.
    • If growth is achieved by increasing sales volume, start-ups can defer the adjustment of the original organizational structure until decision deficits, such as delays in decision-making, begin to surface.
    • In growing companies, maintaining the same team structures and management generally leads to a loss of coordination.
    • It also postpones the creation of a clear corporate structure.
    • If team structures impede this because they are too slow, they must be replaced by hierarchical structures.
  • Financing Balance-of-Payments Deficits and Surpluses

    • Surpluses are easier to finance than the deficits.
    • Government or central bank allows the exchange rate to correct any surpluses or deficits.
    • Unfortunately, the trade deficit initially worsens before improving.
    • For instance, a country is experiencing a balance-of-payments deficit.
    • Investors could utilize money laundering that uses many techniques to structure cash deposits into the banking system, hiding the investors' activities.
  • Bernanke Era

    • The Bernanke Era has included challenges faced by the Federal Reserve such as the financial crisis, strengthening federal policy, and reducing the deficit.
    • The primary structural changes include increases in the economic stability of developing nations and the diminished influence of monetary and fiscal policy.
    • In 2010, Bernanke also expressed his views regarding deficit reduction and reforming Social Security/Medicare.
    • He favored reducing the U.S. budget deficit.
    • He stated that reforming Social Security and Medicare entitlement programs would help reduce the deficit.
  • Hegemony

    • A nation can exert relational and/or structural power over other nations.
    • The United States possesses both relational and structural powers.
    • A hegemony exceeds relational and structural powers.
    • For now, these pieces of paper have value, but some question whether the U.S. government can finance the dual deficits over a long time period.
    • A hegemony's trade deficits become a money source for the world's economy.
  • The Global Economy

    • Traditionally, countries that turned to the IMF had run into trouble because of large government budget deficits and excessive monetary growth -- in short, they were trying to consume more than they could afford based on their income from exports.
    • Often, such problems arose not because of their overall economic management but because of narrower "structural" deficiencies in their economies.
    • In addition, the United States pressed the IMF to require countries to adopt structural reforms.
    • In some cases, the fund eased its demands for deficit reduction so that countries could increase spending on programs designed to alleviate poverty and protect the unemployed.
  • Classical Theory of Motivation

    • If there is any deficit on this level, the whole behavior of an individual will be oriented to satisfy this deficit.
    • The theory is sometimes called the "Motivator-Hygiene Theory" or "The Dual Structure Theory. " Herzberg's theory has found application in such occupational fields as information systems and in studies of user satisfaction.
  • Congenital Defects

    • The outcome of the disorder will depend on complex interactions between the pre-natal deficit and the post-natal environment.
    • It is now known that many metabolic conditions may have subtle structural expression and structural conditions often have genetic links.
    • Still, congenital conditions are often classified in a structural basis, organized when possible by primary organ system affected.
    • A congenital physical anomaly is an abnormality of the structure of a body part.
    • Many affect the structure of body parts, but some simply affect the function.
  • Arguments for and Against Balancing the Budget

    • Balanced budgets, and the associated topic of budget deficits, are a contentious point within both academic economics and politics.
    • There is neither a budget deficit nor a budget surplus; in other words, "the accounts balance. " More generally, it refers to a budget with no deficit, but possibly with a surplus.
    • Balanced budgets, and the associated topic of budget deficits, are a contentious point within academic economics and within politics.
    • In the US, every state other than Vermont has a version of a balanced budget amendment, which prohibits some deficits.
    • During recessions governments should run deficits.
  • Disorders of the Basal Ganglia

    • The basal ganglia is a collective group of structures in the brain .
    • Along with other structures, the basal ganglia are part of a circuit that is integral to voluntary motor function.
    • Though there are known causes of dystonia such as metabolic, vascular, and structural abnormalities, there are still patients with dystonia with no apparent cause.
    • Tourette syndrome is a disorder that is characterized by behavioral and motor tics, OCD, and attention-deficit hyperactivity disorder (ADHD).
    • The image shows 2 coronal slices that have been superimposed to include the involved basal ganglia structures. + and - signs at the point of the arrows indicate respectively whether the pathway is excitatory or inhibitory in effect.
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