The Economic Theory of Allocation of Resources Through the Public Sector
Abstract
The purpose of this paper is to present some of the theories which
economists have devised to explain various aspects of the allocation of
resources through the public sector. Topics include consideration of
the circumstances in which public provision of a particular good would
be more efficient than private provision, attempts to explain (through
theories resembling supply-demand analysis) how individual wants are
transformed into group decisions, and an examination of various aspects
of various voting systems.