Public Economics is the study of economics of the public sector. The study proposes to analyze the government’s economic policy in its ability to meet the economic objectives and the distribution of wealth equitably. The study provides a premise for defining the role and the relevance of government participation in the economic markets. The understanding of micro economic principles is put to extensive use analyzing the relevance of governmental participation in economic activities. It also evaluates a tradeoff between governmental participation in economic activity and the lack of it .The two aspects that are hugely debated and evaluated in the entire study of public economics is the taxation processes and the expenditure of the tax collections.
The subject of public economics is built upon the umbrella concept of welfare economics and is used as an enabler to analyze, monitor and implement the social welfare of the people in a country. The processes of public financial studies include the modalities of implementing issues of public finance. It also encompasses the designing of public policies and the procedures thereof. Besides, public finance monitors the taxation policies and the effects of distribution of the governmental expenditures for the delivery of public goods.
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