This course introduces the role of government in the economy, as well as, some theories of public administration and economics to explain the impacts of some selected policies on the economy. This course covers welfare economics, the relationship between government and the market, some key concepts in public finance (public goods, merit goods, externality, efficiency, and equity), besides, the background and impacts of selected public policies, like housing policy and social welfare policy.

CILO-1: Identify the role of public finance in public policy formulation and public administration. CILO-2: Identify core theoretical concepts in public finance, including equity, efficiency, natural monopoly, public good, externality, monetary policy, New Public Management, and New Economic Geography. CILO-3: Apply the theoretical concepts from this course to explain the public policy in Macau, Hong Kong, and Mainland China. CILO-4: Analyze empirical issues of public policy and social policy from the perspective of public finance.