Public Expenditure

THE ECONOMIC BASIS OF GOVERNMENT ACTIVITY

Efficiency

Government Efficiency - how efficient are governments at obtaining their objectives? how much of their expenditure actually goes to where it is intended? what types of waste exist?

Scope of government activities - what do governments spend money on? what should governments spend money on? what can be left to Markets ? Why governments should be concerned with Externalities , Public Good s.

Externalities and government policy

The Coase Theorem. The Coase theorem is the idea that government, with the power to establish the rights to use resources, can internalize externalities when transaction costs of bargaining are zero.

Public goods

Public choice and the political process

GOVERNMENT EXPENDITURES

Government operations

''Main article: Government Operations ''

Income distribution

Income Distribution - How will these government expenditures influence the incomes of one group relative to another group? Government programs like ?disaster relief? transfer wealth to people that have suffered a loss due to natural disaster. Social security transfers wealth from the young to the old. Engaging in a war transfers wealth to certain sectors of society. Public education transfers wealth to families with children in these schools. Public road construction transfers wealth from people that do not use the roads to those people that do (and to those that build the roads).

FINANCING

Income redistribution effects of the various types of taxes and types of borrowing

Tax es

Debt

Government Debt - the effect of previous years borrowing - the cost of servicing the debt - intergenerational consequences

EXTERNAL LINKS

Data

	CATEGORIES ABOUT PUBLIC FINANCE

	macroeconomics

	public financemacroeconomics

	public finance

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