Importance of the Public Economics in the Academic Curriculum:-

Public economics is study of the government policy through economic efficiency and the equity. It focuses on answering the two types of the questions:

(a) How do the government policies affect economy?

(b) How should the policies be designed in order to maximize the welfare?

It provides a framework of thinking that whether in the economic markets government should participate or not and also the extent it should participate. It builds on theory of the welfare economics and used ultimately as a tool of social welfare.

All the students need to know the working of the government of the society in which they are living, as the rules and policies of the government have effect in their life as well. For this it is very important that students are prepared with the central themes of the public economics and the related disciplines. They should know the concept, logic, ideas and the methods used to make analysis of the same.  Students are the future of the country and they should know all the parameters public economics involving the analysis of the government expenditure and taxation.

If the knowledge of Public economic is there in the academic Curriculum, it will inculcate the analytical skills in the students for dealing with the economy policy issues. By this students can attain specialization in the various policy fields or economic fields. Also they will have idea about the fundamental question that to what extent government action is required in the economy. Thus it will build a foundation for all the students as it let them know on what basis their economy is running. This will help the students wherever they will go in their lives, be it job place, business or the further studies program. It will make them capable enough to make the analysis of the government policies and its effect.

Difficulties encountered and faced by students while solving the public economics  problems:-

Student faces the various levels of difficulties while learning the Public Economics as it deals with the policies of the government which have the effect on all the aspects of the economy. It also throws light on the fact that in the particular economy whether private players are likely to provide the efficient outcomes in absence of the government interference. Students will have to consider many of the things while making the analysis. They will have to analyze the policy of the government and its effects on private players and on the society. So following are the different types of the problem that student might face while solving the problems related to the public economics:

• On what basis the government forms rules and regulation?
• How the policies of government have effect on the private players and the society and the extent of the effect?
• What should be the application and theory of public finances?
• What should be design and analysis of public policy?
• What would be the distributional effects of the taxation and the government expenditure?
• How to analyze the market failure and the government failure?
• To what extent government action is required in the economy?
• Whether private market will be able to provide the efficient outcomes when the government interference is not there and what would be its level?

Few Important Topics covered under Public Economics Problems:

There are various topics that are needed in order to solve the public economics problems like:

(a)    Welfare Foundations of the public economics

(b)   Theory of the public expenditure

(c)    Cost Benefit Analysis

(d)   Analysis and the design of the public policy

(e)   Local and state public goods

(f)     Education

(g)    Distributional effects of the taxation and the government expenditure

(h)   Tax policy

(i)      Theory and the applications of the public finances

(j)     Government and the market failure analysis

(k)    Effect on the private players of the government policies and the extent of such effect.

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