Meaning and Definition of Public economy

Definition of public economy

The public economy is an integral part of economics that deals with economic activity and funding that corresponds to a public administration.
Case is that you responsible for attending all those actions of public administration which are linked to expenditure and public expenditures, such is the case of taxes and costs incurred by the Government on duty but also within its task should address market failures that may arise after the creation and implementation of the Government's economic policy.
Always, the public economy must be based on the achievement of welfare economics, as basic element in generating social welfare in the community, i.e., it should be your most important concern.
It should be noted that these variables are addressed by public economics from a point of view of efficiency and equity, to thus achieve a satisfactory allocation of resources of the State to give result growth and on the other hand the redistribution with awareness of the income and the wealth of a nation, respectively.
Meanwhile, shall be considered part of the public economy to the whole of the public economic sector such as: Central, regional and local public administrations, companies that have a public source and all those agencies dependent on those mentioned.
It is worth mentioning also that the public economy shall be specially conditioned, on the one hand, the economic model in which it is inserted, and on the other hand will be too by the overall framework, internal or external, as appropriate.
For example, at the behest of a market economy, which is the economic organization that arises from the supply and demand of goods and services, the public economy shall be concerned study State intervention in these aspects: development of monopolistic policies, regulate competition and order supply, strengthen and defend the position of the consumer, develop a structural policy that facilitates the growth of stable and sustained over time , and intervene in climate policies that regulate the business cycle.