Overview
Public economics is a vital field that examines how government policies, particularly taxation and public spending, influence the economy. It helps us understand the role of government in providing public goods, addressing market failures, and promoting social welfare. By analyzing taxation, we can ...
Key Terms
Example: Income tax is a common form of taxation.
Example: National defense is a public good.
Example: Pollution is a common market failure.
Example: Welfare economics evaluates the impact of policies on social welfare.
Example: The burden of a sales tax may fall on consumers or producers.
Example: Public parks are often enjoyed by those who do not contribute to their maintenance.
Related Topics
Behavioral Economics
Studies how psychological factors affect economic decision-making.
intermediatePublic Finance
Focuses on the role of the government in the economy through spending and taxation.
intermediateEnvironmental Economics
Examines the economic effects of environmental policies and regulations.
advancedKey Concepts
TaxationPublic GoodsMarket FailureWelfare Economics