Contemporary Western Fiscal and Economic Theory (Volume 1 and 2)

Author: Wang Chuanlun, Gao Peiyong
Publisher:
Publish Date: 1995-10-01
Features: The discussion in this book also revolves around this thread. The book is divided into 4 parts, totaling 18 chapters: Part 1 includes Chapters 1–4, focusing on the explanation of the general principles of economic activities in the public sector. Chapter 1 discusses the relationship between the market and the government. This chapter analyzes issues such as resource allocation efficiency, market failures, the scope of government economic activities, and the functions of public finance, aiming to provide a basic thread for studying Western fiscal and economic theories. Starting from this point, Chapters 2, 3, and 4 discuss three important theoretical categories in the field of public finance: external effects, public goods, and public choice. The discussion on external effects and public goods focuses on explaining the relationship between external effects, public goods, and resource allocation efficiency, as well as the economic reasons for including the correction of external effects and the provision of public goods within the scope of public finance functions. The discussion on public choice aims to link fiscal decision-making with political procedures, using economic methods to explain the process of formulating public revenue and expenditure decisions. Part 2 includes Chapters 5–9, focusing on the explanation of macro-fiscal theory and policy ideas. In this part, the objects of analysis are specified to the various components of public finance. Chapter 5 discusses public expenditure, with the structure, economic impact, and growth model of public expenditure being the key focus. Chapter 6 analyzes the efficiency of public finance, primarily explaining the two methods of budget decision analysis: opportunity cost analysis and cost-benefit analysis. Chapter 7 summarizes the main forms of public revenue, successively bringing into focus taxes, public debt, government-induced inflation, donations to the government, fees, and charges. Chapters 8–9 shift to the discussion of fiscal policy and the fiscal multiplier, which serves as its theoretical foundation. These chapters provide a theoretical framework for analyzing the role of public finance in economic equilibrium. Part 3 includes Chapters 10–15, focusing on the explanation of tax theory and its institutional structure. Chapter 10 discusses the theory of tax principles, highlighting the principles of tax equity and tax efficiency. Chapters 11–12 discuss tax classification and tax system structure, examining the various classification methods of tax types and the design principles of tax system structures, with a focus on the three major tax systems in Western countries today: taxation on income, taxation on property, and taxation on goods. Chapter 13 analyzes the effects of taxation, successively examining the relationships between taxation and producer behavior, consumer behavior, labor input, private savings, and private investment, thereby identifying the potential economic impacts of taxation in these areas. Chapter 14 conducts a comprehensive analysis of tax shifting and incidence, clarifying the meaning and forms of tax shifting and incidence before focusing on the two analytical methods: partial equilibrium analysis and general equilibrium analysis. Chapter 15 extends the discussion to open economies, analyzing and explaining four aspects of international coordination: the coordination of commodity taxation systems, the coordination of income tax systems, the coordination of cross-border income and expense allocation, and the coordination of international anti-avoidance measures. Part 4 includes Chapters 16–18, focusing on the issues of the use and management of public debt. Chapter 16 discusses the general principles of the use of public debt, successively examining theoretical views on public debt, the principles of using public debt, the possibility of substitution between taxes and public debt, consumer behavior under such substitution conditions, and the uses of public debt. Chapter 17 shifts to the examination of public debt management, focusing on explaining the types of public debt, issuance, sources of repayment, and the economic impacts of principal and interest payments. Chapter 18, titled "Public Debt Management and Macro-Economic Control," defines the two effects of public debt management—the liquidity effect and the interest rate effect—before focusing on discussing the transmission mechanism of public debt management as a macroeconomic control tool and its coordination with fiscal and monetary policies.