Public Economics and Intergovernmental Grants

Essay from the year 2016 in the subject Business economics - Economic Policy grade: A University of South Florida (PG Business School) course: Msc Healthcare and Public Administration language: English abstract: This text gives an insight into public economy. It explains intergovernmental grants their objectives history and impact on economy. According to Musgrave (1939) the public economy is comprised of three functions; stabilization distribution and allocation. Accordingly the government should be able to stabilize prices avoiding excessive inflation and has to ensure full employment. Secondly the government should see that the resources are allocated efficiently and finally the governments should also ensure socially accepted wealth levels and market access are maintained if not maintained the wealth has to be redistributed. Apparently by doing this governments can and have to stabilize employment levels prices and economic growth.