Public finance

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Public finance

Tax
Income tax
Payroll tax
Sales tax
Tax advantage
Tax, tariff and trade

Federal banking
Central bank
Federal Reserve System
Bank for International Settlements
Monetary policy
FOMC
History of the Fed

Finance series
Financial market
Financial market participants
Corporate finance
Personal finance
Public finance
Banks and Banking
Financial regulation
v d e

Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. Governments, like any other legal entity, can take out loans, issue bonds and invest. Based on the taxing authority of the entity, they issue bonds such as tax increment bonds or revenue bonds. A bond issued by a public sector entity may give tax advantages to its owners.

Contents

[edit] The economic basis of government activity

[edit] Efficiency

  • A model of efficient resource use
  • Equity vs efficiency
  • Market efficiency conditions
  • Market failures
  • Pareto 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 goods.

[edit] Externalities and government policy

  • Internalization of externalities
  • 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.

[edit] Public goods

  • The characteristics of
  • The demand for pure public goods
  • Efficient output of a pure public good
  • The free rider problem

[edit] Public choice and the political process

[edit] Government expenditures

[edit] Government operations

Main article: government operations

[edit] 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).
  • Income Security
  • Employment insurance
  • Health Care

[edit] Financing

  • Income redistribution effects of the various types of taxes and types of borrowing
  • Taxation, Prices and Efficiency
    • Inpact of taxes on market prices and efficiency

[edit] Taxes

  • The various types of taxes
  • Taxation efficiency
  • Taxation fairness
  • User fees

[edit] Debt

  • Government debt - the effect of previous years borrowing - the cost of servicing the debt - intergenerational consequences
    • Types of government bonds
    • Effects on the bond market

[edit] See also

[edit] External links

[edit] Data

[edit] Websites


General areas of finance
Financial markets • Investment management • Financial institutions • Personal finance • Public finance • Mathematical finance • Financial economics • Experimental finance • Computational finance
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