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1、Nature of public economics,I. Evolution Process of Public Economics Public economics was founded by Adam Smith. 1.Tradition of Anglo-Saxon and Scandinavian Tradition (1) Tradition of Anglo-Saxon Smith, Ricardo, Mill, etc. emphasized on revenue analysis relative to expenditure research.,(2) Scandinav
2、ian Tradition,In the 1880s，the Austrian scholar E.Sax, Italian scholars M.Pantaleoni, A.Marco, and U.Mazzola, Swedish scholars Wicksell and E.Lindahl, etc. put forward the public goods theory systematically emphasizing on expenditure research.,II. Study Objects of Public Economics -Public economic a
3、ctivities: public sector as the main part, remedying market failures as the purpose , and formal & informal institutions as the constraints.,1. Public sector as the main part,Public sector: state regime organs and all their subordinate sectors. Consist of: State regime organ Public utility sector Pu
4、blic enterprise sector,2. Remedying market failures as the purpose -Public sectors holding economic activities is based on the premise that there exist market failures. -Public sector shouldnt be allowed to set foot in any sphere where market failures dont exist.,3. Formal and informal institutions
5、as the constraints -Formal institutions are laws & regulations enacted by congresses, and informal institutions are the supervision of the social voice.,III. Subject nature of public economic,1.Public economics & Economics (1) The identical research theme The essential issue public economics intends
6、 to solve is how to realize resource allocation within the public sector. (2) The identical research methods Many analytical tools of private economics are introduced into the research of public finance.,2.Public economics & Politics (1) The identical activity subject Public sector is the activity subject of political and public economic activities. (2) The identical activity ways The decisions of the public resource allocation are often made in non-market ways.,【Have a think】,What relations and differences there are between public economics and public finance?,
