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Public Finance
The inability of the general population to govern themselves have relegated this group to the subjection of the government and those who have the power in society. It is blaringly obvious that people in general have very little competence when managing finance and public financing operations should only be performed by those who are in the elite public arena and have been educated to do the right thing. The purpose of this essay is to discuss and highlight the major principles of public finance. This essay will discuss the relationships between this practice and its participants and incorporate key information that is useful for making budget decisions
Public Finance
According to Laws.com, public finance is "a description that looks at the governmental effects, efficient resource allocation distribution of income, and macroeconomic stabilization of the expenditures...
The word itself means from its Latin roots " to control the mind." Government is a coercive force that is used to get people to do what the government needs them to do and finance is one method or tool to accomplish this task
Certain principles are important within the realm of public finance. The equimarginal principle is one that helps to guide this process. This term is defined as the point at which consumption or production minimizes spending per unit consumed or produced. In environmental economics, the point at which desired emissions reductions for different firms are achieved at the minimum possible cost. Those responsible for creating public budgets must keep this principle in mind at all times. The Pareto Criterion is another aspect of public finance that is integral in understanding…
References
Gordon, D. (2012). The Pareto Criterion and Ethics. Organization and Markets, 22 Sep 2006. Retrieved from http://organizationsandmarkets.com/2006/09/22/the-pareto-criterion-and-ethics/
Laws.com (nd). "Public Finance." Viewed 10 Mar 2014. Retrieved from http://finance.laws.com/public-finance
This allows the public to see where their taxes are being spent and the way it is addressing the short / long-term issues. (Ekstedt, 2012) (Holzer, 2011) Public choice and the political processes The public has a choice as to who they want to represent them and the way various services will be provided to them. This means that they will select individuals who are closely aligned with these beliefs and
Finance in Public Administration One of the important components towards the successful delivery of services to the public is management of financial resources. Financial management in public administration basically entails budgeting as well as budget execution, monitoring, and accounting with respect to planning and programming of public administration. In essence, public finance administration basically entails raising revenue from the public, allocation of public funds and other financial resources, and managing public
public administration and considers the effect of their writings and theories on the field of public administration. It has 6 sources. An analysis of the core areas of public administration and how these areas interrelate with one another; taking into account the theories and writings of major players in the field of public administration and how their views shaped these areas. The principles of public administration are the clearest description of
PPP One of the newer concepts in public policy is the idea of the public-private partnership, or PPP. Essentially, PPPs are when the government works with private enterprise on a project. Public projects tend to be those that benefit society as a whole, and traditionally governments as representatives of the people have been the drivers of such projects. Private enterprise has often specifically avoided many types of projects because of the
Finance One difference between industries with high leverage and low leverage is a split between the need for fixed assets (high leverage) and a reliance on intellectual capital (low leverage). Airlines need planes, construction companies need equipment, and communications and hotel companies need infrastructure capacity. This compares with computers, drugs, biological products, educational services and electronics, all of which rely heavily on intellectual property to derive value. The conclusion that one
Finance Any Asset Pricing Theory forms the basic foundation of finance theory, in that it deals with the value of any asset under unknown or uncertain circumstances. The relationship between an asset and its price is the mainstay of the asset pricing theory: the lower the price, the poorer the expected performance. The Arbitrage Pricing Theory derives from this theory. The basic idea in the APT theory is that any sort