Definition of Public Economy

The economy public is a an integral part of the economic sciences that deals with the economic activity and the financing which corresponds to a public administration.
By case, it will be in charge of attending to all those actions of the administration public that are linked to Public expenses and expenditures precisely, such is the case of taxes and expenses incurred by the government of the day but also within its task it must attend to market failures that may occur after the creation and application of the politics government economic.

Always, the public economy must be based on the achievement of welfare economy , as a basic element when it comes to generating social well-being in the community, that is, this should be your most important concern.

It should be noted that these variables are addressed by the public economy from an efficiency and equity point of view, in order to achieve a satisfactory allocation of the funds. resources that result in growth and, on the other hand, the conscious redistribution of a nation's income and wealth, respectively.

Meanwhile, the entire public economic sector as a whole will be considered part of the public economy, such as: central, local and regional public administrations, companies that have a public origin and all those organisms dependent on those mentioned.

It is also worth mentioning that the public economy will be especially conditioned, on the one hand, by the model economic in which it is inserted and on the other hand it will also be so by the internal or external global framework, depending on corresponds.

For example, at the behest of a market economy, which is that economic organization that arises from the supply and demand of goods and services, the public economy should take care of studying the intervention state in these aspects: development of antitrust policies, regulate competition and order the supply, strengthen and defend the position of the consumer, develop a structural policy that facilitates stable and sustained growth over time, and intervene in short-term policies that regulate the cycle economic.