The Role of Public Economics in Shaping Market Dynamic: A Systematic Literature Review
Eva Afrilia, Pricylia Chintya Dewi Buntuang, Siti Anisah, Nur Adha K. Husen

Student of Public Administration Study Program, Faculty of Social and Political Sciences, Tadulako University

Abstract

Public economics is a branch of economics that studies public affairs, the public, the affairs of many people, society, government, or the state. It evolves as society develops. Richard A. Musgrave, a renowned public economist from the 20th Century who is currently Professor Emeritus in the Department of Economics at Harvard University, USA, argued that governments do three things in the economy: stabilization, allocation, and distribution. He argued that these must be understood to build a better future for everyone. In practice, government actions in carrying out these roles are interconnected with each other, so it is often difficult to clearly divide these roles into the three branches mentioned above. The focus of public economic analysis is on how the government uses resources and how that impacts on people^s welfare. It also looks at the relationship between fiscal policy and resource allocation.

Keywords: Public Economics, Fiscal Policy, Market Dynamics, Traditional and Modern Markets, Capital Markets

Topic: Economics