Public sector of the economy
Public Sector Economics examines the impacts of government revenue, expenditure, and investment decisions. Areas of emphasis include tax policy, education, transportation, poverty and welfare, delivery of public services, and economic development. Current research areas include public policy related to child care and rural labor market issues, analysis of business and consumption taxation, evaluations of alternative strategies for non-metropolitan development, and the impact of taxes on individual decisions. Public Sector Economics examines the impacts of government revenue, expenditure, and investment decisions. Areas of emphasis include tax policy, education, transportation, poverty and welfare, delivery of public services, and economic development [Department of Applied Economics].
The public sector is a portion of the economy composed of all levels of government and government-controlled enterprises. The general definition of the public sector includes government ownership or control rather than mere function. It thereby includes, for example, the exercise of public authority or The implementation of public policy. When pictured as concentric circles, the core public service in central and subnational government agencies defines the inner circle of the public sector. In this case, the distinction between the public and private sectors is relatively straightforward—it is evident in terms of employment relationships and the right to exercise public power. The next circle includes some different quasi-governmental agencies that are placed outside the direct line of accountability within the government. Examples range from social security funds to regional development agencies. The outer circle is populated by state-owned enterprises, usually defined by the government’s ownership or it owning the majority of shares. The term public sector is also used for analytical purposes, in particular, as a contrast to the private sector and third, or voluntary, sector. That allows for mapping the scope of state activities into the broader economy (also allowing for comparison across space and time). Furthermore, it highlights distinctive patterns and operating procedures within the public sector [Encyclopedia Britannica].
Understanding the Economic Impact of Government Choices. University of Minnesota. Department of Applied Economics. Retrieved from: https://apec.umn.edu/research/research-topics/public-sector-economics
Wegrich, K. (2022). Public sector. Encyclopedia Britannica. Retrieved from: https://www.britannica.com/topic/public-sector