Intermediate Public Economics

Public economics studies how government taxing and spending activities affect the
economy--economic efficiency and the distribution of income and wealth. This comprehensive text in
public economics covers the core topics market failure and taxation as well as recent developments
in the political economy and public choice literatures. It is unique not only in its broad scope but
in its balance between public finance and public choice and its combination of theory and relevant
empirical evidence.After introducing the theory and methodology of public economics and reviewing
the efficiency of the competitive equilibrium, the book presents a historical and theoretical
overview of the public sector. It then discusses departures from efficiency, including imperfect
competition and asymmetric information; issues in political economy, including rent-seeking (a topic
often omitted from other texts); equity; taxation issues, including tax evasion and its
consequences; fiscal federalism and tax competition among independent jurisdictions; and the
intertemporal issues of social security and economic growth.This text introduces the reader to the
theory of public economics and the most significant results of the analysis, providing an overview
of the current state of the field. It is accessible to anyone with a background of intermediate
microeconomics and macroeconomics and can be used in advanced undergraduate as well as graduate
courses. Although the mathematics has been kept to a minimum, the book remains analytical rather
than discursive. Annotated suggestions for further reading and numerous exercises are included at
the end of each chapter.