Public Sector Economics (3rd Edition)

Author: (American) Stiglitz / Guo Qingwang, et al.
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 exciting and media-covered topics in economics, such as healthcare, defense, education, social security, and tax reforms. The organization of the book is flexible. The sequence followed is: first, introducing basic issues and specific institutions in Part 1 and Part 2, and reviewing the microeconomic theories implied by the role of the public sector; then, developing public expenditure theory in Part 3, including public goods, public choice, and bureaucracy; Part 4 applies the theory to the five major areas of U.S. public expenditure: healthcare, defense, education, social security, and social welfare programs; and Parts 5 and 6 follow this pattern, first presenting tax theory and then analyzing it. Part 7 examines two further themes: 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 provided in the "Instructor's Manual," which includes the course organization, teaching tips, test questions, and advanced topics that some instructors may wish to include in the lecture notes.