Summary
Summary Public economics
- Course
- Institution
- Book
A summary of both the substance and the articles discussed during the lectures
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Volledige samenvatting Economie van de Publieke Sector (boek & hoorcolleges) - bestuurskunde jaar 2
-
[TEST BANK] PUBLIC FINANCE IN CANADA 5TH EDITION BY ROSEN, GAYER, SNODDON.
-
Economie van de publieke sector aantekeningen + samenvatting boek
1 review
By: Rachellavander • 5 year ago
Seller
Followwandykalk
Reviews received
Content preview
Samenvatting Public economicsNormative point of view --> subjective and value based, is the economy fair?
Positive point of view --> objective and fact based, is the economy efficient?
Hoorcollege 1
There is often a role for the government in a market economy because the outcomes of unfettered markets are
not always desirable (marktfalen).
Milton Friedman (against government interference) ‘’spending someone else’s money on someone else’’
Role of the Example
government
0 Anarchy Somalia
1 Night-watchman state
2
3 Liberal market economy United Stated
4
5 Modern welfare state Netherlands
6 Nanny state Sweden
7
8 Socialism with market elements China
9 Centrally steered command economy North Korea
Government aim:
Maximisation of social welfare (and a number of subordinate goals)
1. Public interest model
Normative aspect: government serves the interest of the public, citizen-based.
Aim of the government: Functional government -> benevolent social planner
2. Public choice model
Positive aspect: political actors act strategically and pursue their own interest
Aim of the government: maximisation of social welfare is secondary to personal goals
Microeconomic theory suggests that perfect competition leads to very desirable outcomes: efficient allocations
that can’t be improved upon emerge as equilibria through anonymous market coordination by price-taking,
rational and selfish agents. This is the first-best allocative outcome.
However the model says nothing about fairness (equity) even though this is where much of policy
concern lies.
Also there are a lot of assumptions that make sure the market works efficiently. However in real markets
many market failures occur.
1st theorem
A general competitive equilibrium leads to a Pareto efficient allocation of resources. A person is not capable in
increasing their utility without decreasing some else’s. This means there is no incentive to trade anymore.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller wandykalk. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.58. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now