What policy choices should be made so as to ensure that higher path actually materializes? This second, technical, question can be answered – at least in the abstract – through the tools of public finance. Consider some feasible allocation. What prevents that feasible allocation from emerging as an equilibrium outcome?
Before I close my welcome address, allow me to offer my warmest welcome to you all and express my deepest gratitude to your visit. I hope you will make the most of your stay in Bali and take home with you warm memories of your visit. 23.