Issues in public policy

Abstract

The econoomic research on public policy is the study of the effect of the government policy on economic welfare, efficiency and equity. I builds on the theory of welfare economics and is ultimately used as a tool to improve social welfare. The premise is whether or not the government should intervene, and to what extend, in the various economic markets. Inherently, this study involves the analysis ansd implementation of government policies on taxation and revenues, as well as on expenditures, which are policies collectively refereed as a public finance. The study of the governmental role in market failures, externalities and redistribution policies is also central in this strand of research.