Prof. Hugh Dalton points out that “in the sphere of public finance, we are still haunted by the superficial views and shallow percepts of an early age”. The principles that shaped the financial policies and operations of the state during the nineteenth century have lost its validity and applicability in the twentieth century and even today. The doctrine of Laissez-faire, [...]
In this article we will discuss about the similarities and difference between public and private finance. Similarities between Public and Private Finance: While the individual is concerned with the utilization of labour and capital at his disposal, in order to satisfy some of his wants, the state is concerned with the utilization of the labour and capital and other resources [...]
Welfare economics is the study of efficiency and equity of resource allocation. Allocative efficiency is the point at which allocations maximize total net benefits of society. Pareto efficiency or optimality is another way to measure efficiency. Developed by Vilfredo Pareto, (1848 - 1923) Pareto efficient allocation of goods occur when no other possible allocation makes at least one individual better [...]