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Proposition 13 (H2)<br />A proposition made binding on the State of California (USA) in 1978 to reduce the amount of taxation on residential property. It was believed that residential property owners were paying an unfair amount of taxation compared with business. The proposition reduced the assessed values of
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regional multiplier (R1)<br />The number of times the income or employment of a region will multiply as a consequence of an increase in AUTONOMous EXPENDITURES.<br /> TWo approaches are often used: the economic base multiplier and the modified KEYNESIAN approach. The economic base approach assumes that regional income can be divided into two pa rts -what a rises from the BASIC IN DUSTRIES of the region and what springs from other regional industries. This multiplier is then calculated as I /(1 - s) with s the ratio of income earned in the non-basic sector to total regional income, i.e. the regional mul tiplier is<br />1 1 - ( 1 - t )( c - m )<br />with t the income tax rate, c the ma rginal propensity to consume and m the ma rginal propensity to import. There are many problems in calculating this multiplier, including the fact that basic industries may vary greatly in the extent to which they export to other regions. The KEYNESIAN approach merely applies a national multiplier formula to a region. A multiplier for a particular region is usually smaller than that for the national economy of which it is part as regions are more open, thus suffering from leakages of expenditures to other regions.<br /><em>See also:</em> multiplier

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debt restructuring (GO)<br />Changing the MATUR!T!ES of the debts of a government or a firm so that it is easier to service them. Restructuring often takes the form of lengthening the maturity of debt. It is allowed by creditors who would otherwise have little prospect of receiving interest and repayment of the PRINCIPAL
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