DefiningtheFieldofStudyPublicFinance–thefieldofeconomicsthatanalyzesgovernmenttaxationandspendingpoliciesPublicSectorEconomics–seedefinitionabovePublicEconomics–seedefinitionaboveWhatisnotpartofpublicfinance?anicviewofgovernmentMechanisticviewofgovernmentTheLegalFrameworkFederalgovernmentFederalConstitutionalprovisionsArticle1,Section8Article1,eInterestpaymentsBudgetdocumentsUnifiedbudgetRegulatorybudgetState,Local,andFederalGovernmentExpenditures(selectedyears)1234TotalExpenditures(billions)2008Dollars(billions)*2008DollarspercapitaPercentofGDP**********,%19702951,3086,%19808431,9058,%19901,8732,80411,%20002,8873,52712,%20084,7234,72315,%*Conversionto2008dollarsdoneusingtheGDPdeflator Source:CalculationsbasedonEconomicReportofthePresident,2009[,286,325,381].AdjustingforInflationAdjustingforPopulationRelativetoEconomyGovernmentExpendituresasaPercentageofGDP(2008)ooperationandDevelopment[2008a].CompositionofFederalExpenditures (1965and2008)NotedeclineinDefenseNoteincreaseinSocialSecurity,eSecuritySource:EconomicReportofthePresident,2009[].Source:EconomicReportofthePresident2009,[].CompositionofState&LocalExpenditures (1965and2008)IncreaseinpublicwelfareSource:EconomicReportofthePresident[2009,].CompositionofFederalTaxes (1965and2008)Socialinsurance e e moreimportantCorporateandother e lessimportant
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