Public Economics

The discipline deals with the economics of the public sector as that sector operates in a mixed system. Its operation includes not only financing, but has broad bearing on the level and allocation of resource use, the distribution of income, and the level of economic activity. Although our subject matter is traditionally referred to as public finance, this course deals with the real as well as the financial aspects of the problem. The public sector operates in interaction with the private, and both sectors enter the analysis. Not only do the effects of expenditure and tax policies depend upon the reaction of the private sector, but also the need for fiscal measures is determined by how the private sector would perform in their absence.