Public Finance: Responsibilities and Limitations of Government

This textbook systematically sets forth the basic issues involved in public finance and public policy. All issues investigated explore the choice between voluntary market decision to earn and spend income versus assignment of responsibility to governments to tax and spend. Areas covered are markets and property, collective benefits, voting on public speaking, market corrections, social justice, political processes and redistribution, taxation, user pricing, public policy for welfare issues, and the question of how much government is needed in the modern state. It is designed for courses in public finance or public economics, with additions given in courses titled political economy. The basic material in each chapter may be used by students with an elementary understanding of economics. Chapter supplements are designed for upper-level undergraduates. Graduate students will find the text answers fundamental questions addressed in the professional literature. All chapters provide useful question sets and guidance for further reading.