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International Futures Help System

Government Spending

The economic submodel provides total government spending. Government spending by category begins as a simple product of total government consumption and fractional shares by spending category.

Spending by type (military, health, education, research and development, other, and foreign aid) is largely specified exogenously, building on the initial conditions for each country/region. In addition, an action-reaction (arms-race) dynamic can be established in military spending if the action-reaction switch is turned on. After adjustments to foreign aid and military spending, spending in all categories is re-normalized to equal total governmental spending.

Educational spending is further broken out of total educational spending. The user can shift the spending across three educational levels (primary, secondary, and tertiary) through the use of an educational multiplier.


See also the specifications of detailed final demand and of international finance.