Public finance

Public finance refers to the monetary resources available to governments and also to the study of finance within government and role of the government in the economy.^[1] Within academic settings, public finance is a widely studied subject in many branches of political science, political economy and public economics. Research assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.^[2] The purview of public finance is considered to be threefold, consisting of governmental effects on:^[3]

The efficient allocation of available resources;
The distribution of income among citizens; and
The stability of the economy.

American public policy advisor and economist Jonathan Gruber put forth a framework to assess the broad field of public finance in 2010:^[4]

When should the government intervene in the economy? To which there are two central motivations for government intervention, market failure and redistribution of income and wealth.^[4]
How might the government intervene? Once the decision is made to intervene the government must choose the specific tool or policy choice to carry out the intervention (for example public provision, taxation, or subsidization).^[5]
What is the effect of those interventions on economic outcomes? A question to assess the empirical direct and indirect effects of specific government intervention.^[6]
And finally, why do governments choose to intervene in the way that they do? This question is centrally concerned with the study of political economy, theorizing how governments make public policy.^[7]

^ Gruber, Jonathan (2005). Public Finance and Public Policy. New York: Worth Publications. p. 2. ISBN 0-7167-8655-9.
^ Jain, P C (1974). The Economics of Public Finance.
^ Oates, Wallace E., "The Theory of Public Finance in a Federal System", The Canadian Journal of Economics / Revue Canadienne D'Economique, vol. 1, no. 1, 1968, pp. 37–54
^ ^a ^b Gruber, J. (2010) Public Finance and Public Policy (Third Edition), Worth Publishers, Pg. 3, Part 1
^ Gruber, J. (2010) Public Finance and Public Policy , Worth Publishers, Pg. 6, Part 1
^ Gruber, J. (2010) Public Finance and Public Policy (Third Edition), Worth Publishers, Pg. 7, Part 1
^ Gruber, J. (2010) Public Finance and Public Policy (Third Edition), Worth Publishers, Pg. 9, Part 1

[Public_Finance_and_Public_Policy-1] Gruber, Jonathan (2005). Public Finance and Public Policy. New York: Worth Publications. p. 2. ISBN 0-7167-8655-9.

[The_Economics_of_Public_Finance-2] Jain, P C (1974). The Economics of Public Finance.

[3] Oates, Wallace E., "The Theory of Public Finance in a Federal System", The Canadian Journal of Economics / Revue Canadienne D'Economique, vol. 1, no. 1, 1968, pp. 37–54

[Gruber,_J._2010_Pg._3-4] Gruber, J. (2010) Public Finance and Public Policy (Third Edition), Worth Publishers, Pg. 3, Part 1

[5] Gruber, J. (2010) Public Finance and Public Policy , Worth Publishers, Pg. 6, Part 1

[6] Gruber, J. (2010) Public Finance and Public Policy (Third Edition), Worth Publishers, Pg. 7, Part 1

[7] Gruber, J. (2010) Public Finance and Public Policy (Third Edition), Worth Publishers, Pg. 9, Part 1

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Public finance

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