TITLE:
An Economic Instrument to Improve Communities
AUTHORS:
Jan Stenis, William Hogland
KEYWORDS:
Nordic Model, Efficiency, Utilities, Flows
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.6,
August
12,
2019
ABSTRACT:
A general strive exists for achieving the wanted results with as limited resources
as possible. There is a need for ever more cost-effective organisations,
making this paper required to improve the policy efficiency and raise the
technological standard in various communities. The launched economic instrument
also improves the ecological footprint of the organisations in question.
The Naturally Optimised Revenue Demand in Communities (NORDIC)
model is introduced to improve the flow of physical and immaterial utilities
through entities of different kinds, such as producing companies and nations.
The basis for the work is the existing Efficient Use of Resources for Optimal
Production Economy (EUROPE) model, which is developed to become more
powerful. Constructed shadow costs are added to the bookkeeping systems of
organisations to give economic incentives to improve the economy, technology
and environment. The method provides a single key indicator to improve
performance. A manual for the practical use of the NORDIC model is presented.
The case study shows how to induce an economic incentive to reduce
the costs and increase the efficiency for the health care, education and social
services in the nation of Sweden. The model shows utility for various entities,
such as public sectors, within nations. Citizens get a better life, and improved
health, due to a better economy when the results in this paper are implemented.