Intermediate Public Economics, 2nd Edition

A new edition of a comprehensive text, updated throughout, with new material on behavioral economics, international taxation, cost-benefit analysis, and the economics of climate policy.

Public economics studies how government taxing and spending activities affect the economy — economic efficiency and the distribution of income and wealth. This comprehensive text on public economics covers the core topics of market failure and taxation as well as recent developments in both policy and the academic literature. 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.

The book covers the theory and methodology of public economics; presents a historical and theoretical overview of the public sector; and discusses such topics as departures from efficiency (including imperfect competition and asymmetric information), issues in political economy, equity, taxation, fiscal federalism, and tax competition among independent jurisdictions. Suggestions for further reading, from classic papers to recent research, appear in each chapter, as do exercises. The mathematics has been kept to a minimum without sacrificing intellectual rigor; the book remains analytical rather than discursive. This second edition has been thoroughly updated throughout. It offers new chapters on behavioral economics, limits to redistribution, international taxation, cost-benefit analysis, and the economics of climate policy. Additional exercises have been added and many sections revised in response to advice from readers of the first edition.

Table of Contents

Part I. Public Economics and Economic Efficiency
Chapter 1. An Introduction to Public Economics
Chapter 2. Equilibrium and Efficiency
Chapter 3. Behavioral Economics

Part II. Government
Chapter 4. Public Sector Statistics
Chapter 5. Theories of the Public Sector

Part III. Departures From Efficiency
Chapter. 6 Public Goods
Chapter 7. Club Goods and Local Public Goods
Chapter 8. Externalities
Chapter 9. Imperfect Competition
Chapter 10. Asymmetric Information

Part IV. Political Economy
Chapter 11. Voting
Chapter 12. Rent-Seeking

Part V. Equity and Distribution
Chapter 13. Optimality and Comparability
Chapter 14. Inequality and Poverty

Parti VI. Taxation
Chapter 15. Commodity Taxation
Chapter 16. Income Taxation
Chapter 17. Tax Evasion
Chapter 18. The Limits to Redistribution

Part VII. Multiple Jurisdictions
Chapter 19. Fiscal Federalism
Chapter 20. Fiscal Competition
Chapter 21. Issues in International Taxation

Part VIII. Issues of Time
Chapter 22. Intertemporal Efficiency
Chapter 23. Social Security
Chapter 24. Economic Growth

Part IX. Applications
Chapter 25. Cost–Benefit Analysis
Chapter 26. Economics of Climate Policy