How are public administration and economics related?

One of the most effective ways in which to organize and govern. Society is through public administration. Governments depend on the notion to develop and implement rules and laws. And ensure order within state and local communities.

Public administration is facilitated by economics.


Which provides three primary functions:
The distribution of goods and services.
The rationing of goods and services.


The determination of the manner in which an economy shall expand.
Although, economics and public administration are two different fields. There is much that overlaps between them. Knowledge of each field is required. To formulate prudent policies for governing any given society.

Public Administration

Public administration is legally mandated as a form of government. To function visibly and justly. Public administrators must determine which rules are most effective. In the delivery of services to their community.
Through this process, they must study the goals. And the expectations of the society’s members. A significant component of such studies involves drawing on economic indicators. That measure progress toward an established goal (Allison, 2011).

Economics has three main functions, according to Allison (2011). The allocation of goods and services. The distribution of goods and services. And the determination of the direction in which an economy will grow.
All three functions are essential to public administrators. Who must know how different economic principles affect their community or government organization.

Through an analysis of these factors, public administrators can then determine. Which policies best meet the needs of society while being mindful of fiscal responsibility.
Similarly, public administration is required for guiding. Private sector organizations and individual employees. Its function in society is to enforce laws that guarantee equality. For all citizens, irrespective of their race. Gender, age, etc. While safeguarding each citizen’s right. To property and privacy as well.
Public administration also greatly helps businesses. And other private entities in economic growth, by reviewing regulations and laws that already exist. Determining what changes are needed to encourage consumers to spend money within the local community, thus stimulating the economy. In this sense, public administration intersects at various points with economics within its operations.
In general, the public administration. Economics purposes are being a guide in society at large. Because of protective government regulations. And through policymaking of individual rights. By promoting all members equality

Any given community, or even workplace (Shafritz & Hyde, 2009). Where public administrations focus on governmental agencies and workers. Administrative law – Economics specifically studies the social behaviors.
That enables market transactions between individuals or organizations. Both disciplines are necessary for creating and enforcing policy. The better public administrators understand economic principles. The more effective they will be in creating policies that provide for an orderly society.

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