ABSTRACT
Many of the factors of production or policy instruments that enter the production of police protection are private goods even if the output or policy objective is itself a public or a non-private good; there is, therefore, no way of knowing whether a government will deal only in public goods short of a careful and detailed analysis of production processes and of market conditions. If the government paid more than the alternative value of the resources used up in producing the public or non-private good, the economic budget could be smaller than the accounting one; obviously it could also be larger. Full employment and price stability, being stabilization policies, have usually been analyzed with different tools than have allocation or distribution policies. Among the more important are: import restrictions, export subsidies, domestic deflation, exchange controls, bank or discount rate increases, and restrictions on investment abroad and on the movement of tourists.
