Supply-side policy
Policies to increase productive capacity (LRAS).
Supply-side policies
Key definitions
Market-based supply-side
Tax cuts, deregulation, privatisation.
Interventionist supply-side
Education, training, infrastructure.
Human capital
Skills raising productivity.
Competition policy
Contestability and efficiency.
Labour market reform
Flexibility vs worker protection.
R&D incentives
Tax credits for innovation.
Infrastructure spending
Transport, digital, energy networks.
Migration policy
Skills-based immigration.
Environmental supply-side
Green investment raising long-run efficiency.
Key concepts
Contrast with demand-side — shifts LRAS not only AD.
UK productivity puzzle motivates supply-side debate.
Relevant tips
- Evaluate time lags — LR benefits take years.