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MindMap Gallery Basic Theory of Public Finance
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Basic Theory of Public Finance
This is a mind map about the basic theory of public finance. The basic theory of public finance is the basic theory about the essence, functions, system, revenue, expenditure and management of public finance.
Edited at 2024-01-16 16:39:05
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Basic Theory of Public Finance
Overview
financial
origin
emerged with the emergence of the state
resulting from the creation of residual distribution
concept
The unification of general attributes and special attributes (revenue and expenditure issues)
essential attributes
The nature of the country determines the nature of finance
public finance
meaning
The unity of general attributes and special attributes
relationship with national finances
Tolerate and be included
Socialist public finance with Chinese characteristics (performance)
The unity of people's nature and public nature
Compatible with the socialist market economic system
Democratic and legal finance that is compatible with national governance
Open, inclusive, and promote the construction of a community with a shared future for mankind.
Thought
Function
government and market
market efficiency
The extent is determined by the level of resource allocation
Number of consumers and producers
Product homogeneity
resource mobility
information transparency
Pareto optimal
Your own state will not get better without making others worse.
Pareto improvement
market failure
monopoly
Completely monopolize the market
oligopoly market
public product
define
Non-exclusive (price determined)
non-competitive
Classification
pure public goods
Both non-excludable and non-rivalrous
quasi-public goods
Be non-exclusive or non-competitive
Public resource
only non-exclusive
congested toll road
club products
only non-competitive
tolled uncrowded roads
free rider theory
Lindahl equilibrium
If you want public goods to be provided smoothly and avoid free-riding,
concept
One party has needs
And others know that one party has needs and know exactly how much they need
does not exist
externality
That is, private benefits are inconsistent with social benefits
The reason for this is failure to assume due responsibilities or failure to receive due remuneration.
Classification
Produce positive externalities
Bringing benefits to others without receiving due compensation
Beekeeping garden next to the orchard
positive externalities of consumption
Bringing benefits to others without receiving due compensation
Take the initiative to vaccinate
produce negative externalities
Causing harm to others without receiving due compensation for the harm
Factory discharge
negative externalities of consumption
Causing harm to others without receiving due compensation for the harm
smoking
Information asymmetry
adverse selection
Moral Hazard
market inefficiency
unfair income distribution
Initial allocation (market decision)
Redistribution Three allocations (the market cannot decide)
That is, the market economy cannot achieve economic equality.
macroeconomic fluctuations
reason
demand shock
supply shock
technological impact
institutional changes
market failure
The relationship between government and market
The market plays a decisive role in resource allocation
Give full play to the role of government
government control
tax
law
Government and market coordination
Function
Resource allocation
concept
content
Providing public goods
Government production, government supply
private production, government supply
externality correction
government control
Legal means
Determine ownership of property rights
Implement integration
Economic entities expand, turning the outside into the inside
government taxes
Fines, etc., increase the marginal cost of behavior
Pigou tax
Government subsidies
Regulation of natural monopolies
Mechanisms and Means
Realize the rational allocation of resources between the government and the private sector
Optimize financial structure
Rational use of fiscal revenue and expenditure policies and adjustment of market mechanisms
Improve financial allocation of resources
income distribution function
Target
achieve fair distribution
content
Draw a clear line between market allocation and fiscal allocation
Mechanisms and Means
Use government taxes to adjust corporate income and personal income to make them consistent with social equity
Regulate government asset income
Standardize wage system
Improve the social insurance system
Improve the social security system for social groups
Social Assistance
Social Welfare
Economic stability and development functions
content
Full employment
price stability
Balance of payments, etc.
Mechanisms and Means
Use various revenue and expenditure methods to adjust against the direction of economic winds and promote the balance of social supply and demand
Use institutional factors in fiscal revenue and expenditure activities to play an "automatic" stabilizing role
Reasonably arrange the fiscal revenue and expenditure structure and promote the optimization of economic structure
relation
Contradiction
consistency
Conditioning and learning from each other