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graduate tax (H2)<br />A tax on the earnings of graduates imposed to recover the public expenditure incurred in financing college or university education. The tax is related to future earnings but there can be a 'tax holiday' covering the first few years of employment or until a threshold level of income has been reached. Proponents of the tax argue that it makes possible a greater expansion in the number of students; opponents assert that this increase in taxation will discourage participation in higher education.
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modern economy (NO, P4)<br />An ECONOMY which has reached an advanced stage of DEVELOPMENT with high per capita incomes, a full range of political and financial institutions, industries using the latest available technology and a large service sector. The shorthand measure of modernity, real GROSS NATIONAL PRODUCT per head, is misleading because countries with different ranges of economic activity have been put on a par, e_g. China with India, Haiti with Mali, France with Libya. Increasingly, the overall level of technological diffusion has been chosen as a better indicator.
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social time preference rate (D9)<br />The rate at which society trades consumption of one time period with consumption of another. A positive rate means that the present is preferred to the future. Although the market rate of interest has been used as a proxy for this rate, it is not in all cases suitable. There is a variety of markets and rates according to the term and the purpose of the loan. The preferences of persons, including children, who neither borrow nor lend at interest are ignored. Market rates can be pushed up by the monopoly power of banks and by the risk of non-repayment. The shorter life expectancies and time horizons of the poor, especially in less developed countries, limit the usefulness of this concept.
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<strong>National Disbursing Network (NDN)</strong> – ELM' s Central Disbursing Agent (CDA) service.
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