This textbook covers the financial and policy aspects of the public sector. It focuses on organizations that are financed through social contributions and taxes, and on the role of elected representatives in setting budgets and rules. The emphasis is on the differences with the market sector, where revenues arise directly from sold production.
In addition to the government’s expenditures and revenues, the impact of regulation on economic decisions is also analyzed. The influence of taxes, social contributions, and government spending on the behavior of citizens and entrepreneurs is a core component. This book therefore provides insight into how the public sector works and into the welfare effects of public policy.