Corporate Governance mechanisms and strategies

1
Corporate Governance mechanisms and strategies

• Owners (who act as investors) and managers who
  have fiduciary responsibility
• Mechanisms
• The stock market
• Annual meetings
• Board of directors
• Strategies (Hirschman)
• Exit
• Voice

2
Macroeconomic policy (chapter 10)

• Taxation
• Public spending
• Money supply

3
Taxation

• Issues to consider
• How visible are they?
• How socially acceptable are they?
• Progressive versus flat
• Who pays? (how many people? Is it connected to
  usage?)
• Incentives on the economy and individuals?
• How burdensome it is to administer?

4
Taxes

• Income tax
• Corporate income
• Capital gains
• Estate tax
• Social insurance payments
• General consumption taxes
• Property taxes
• Non-tax revenue

5
Public Spending

• Privatization and contracting out of services
• Welfare for business
• Tax expenditures
• Miscellaneous subsidies

6
Supply of money

• Inflation
• Exchange rate

7
Total federal revenue by source
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Federal revenue distribution by source
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