x !
Archived Curricula Guide 2011–2012
Curricula Guide is archieved. Please refer to current Curricula Guides
Local Public Economics

From economic perspectives, local authorities have two main tasks. Firstly municipalities produce and organise services to local citizens (municipality as a corporation). Secondly municipality contributes to economy of their jurisdictions (municipality as an actor in regional economy). Both perspectives are the main teaching and research themes in field of local public economic and finance.

Municipalities as corporations consist of different sub units like gross or net-budgeted agencies, local public utilities, corporations and joint municipal authorities. Mainly local tax revenues finance the services, which are produced and organised by municipalities. Nevertheless several local public utilities and corporations sell their services by subsidised or market prices.

A central tool of managing municipalities is a budget in which goals of different activities are decided. Members of city or municipal council decide by the budget local tax rates and services, which have to be arranged. All kind of cut downs, public savings, recovery programmes and new investments will be decided by the budgets.

Experts of local public economics must unconditionally understand all functions and principles of the management of municipalities and know tools, which is used in governing and understanding economy. This kind of tools is provided by accounting, which produces the main information for mayors and managers of municipalities. Studies of local public economics include courses in bookkeeping, management accounting, finance, auditing and analysis of local public finance.

Another perspective of the studies of local public economics is regional economy, because municipalities are important contributors and actor of local economic development. Municipalities create premises also for local business activities. This kind of policy is important in improving local employment. An active business community and local private services also benefit and support everyday life of local citizens. Municipality as an actor in regional economy theme is concerned in courses of local, regional and urban economics.

Local public economy is a central part of the modern economic life. It is important for local public economists to understand economical phenomena as extensively as possible. In order to support learning processes of the students, the discipline offers a wide selection of courses not only in accounting and finance but also economics.

School of Management