Public Sector Economics: 3rd Edition

Author: (American) Stiglitz / Guo Qingwang, etc.
Publisher:
Publish Date: 2005-05-01
Features: This book not only explains basic issues such as market failure, government intervention, public goods, and tax principles in an accessible manner but also focuses on key topics in economics that are exciting and attract media attention, such as healthcare, defense, education, social security, and tax reforms. The organization of the book is flexible. The sequence followed is: first, in Part 1 and Part 2, introducing basic issues and specific institutions, and reviewing the microeconomic theories implied by the role of the public sector; then, in Part 3, developing public expenditure theory, including public goods, public choice, and bureaucracy; in Part 4, applying the theory to the five major areas of U.S. public expenditures: healthcare, defense, education, social security, and social welfare programs; and repeating this pattern in Parts 5 and 6, first introducing tax theory, then analyzing it. Part 7 examines two more advanced topics: the first involves state and local taxes, expenditures, and fiscal federalism, while the second fiscal policy issue emphasizes the relationship between microeconomic and macroeconomic performance. When the second edition was published 10 years ago, deficits were still a core issue, but now, this has temporarily changed as surpluses have emerged. A fully viable alternative sequence is to discuss taxes before expenditures. Parts 5 and 6 have been carefully handled, so teachers who wish to cover taxes after completing Part 1 can do so without losing continuity. Further suggestions are included in the Instructor's Manual, which covers the course organization, teaching tips, test questions, and additional advanced topics that some instructors may wish to include in the lecture notes.