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Lecture Public economics (5th edition) - Chapter 1: The public sector in the economy

In this chapter, the following content will be discussed: Give a brief overview of different views of the role of government in the economy, list key issues confronting Southern African governments regarding their role in the economy, distinguish between the main institutional categories of the public sector, discuss the salient features of and trends in the size and composition of the South African public sector, discuss various aspects of the relationship between the public sector and the rest of the economy. | OXJORD UNIVERSITY PRESS SOUTHERN AFRICA Public Economics Chapter 1 The public sector in the economy Oxford University Press Southern Africa Pty Ltd 2011 Learning outcomes Give a brief overview of different views of the role of government in the economy List key issues confronting Southern African governments regarding their role in the economy Distinguish between the main institutional categories of the public sector Discuss the salient features of and trends in the size and composition of the South African public sector Discuss various aspects of the relationship between the public sector and the rest of the economy. OXFORD UNIVERSITY PRESS SOUTHERN AFRICA Oxford University Press Southern Africa Pty Ltd 2011 Introduction Impact of the public sector government on resource allocation and distribution Market system vs political system - Price is the equilibrating mechanism - Political process addresses needs not satisfied in the market system Political equilibrating mechanism the ballot box Price tax. Features of SA s current democracy Legacy of the past Fiscal challenges. OXFORD UNIVERSITY PRESS SOUTHERN AFRICA Oxford University Press Southern Africa Pty Ltd .