Public Finance, 4th Edition

Chapter 3: First-Best and Second-Best Analyses and the Political Economy of Public Sector Economics

1. Lump-Sum Redistributions and Public Sector Theory 
2. First-Best Analysis 
   1. The Two Dichotomies in First-Best Models 
3. Second-Best Analysis 
   1. Constrained Social Welfare Maximization 
   2. The Most Common Policy and Market Constraints 
   3. Distorting Taxes and Transfers 
   4. Fixed Budget Constraints 
   5. Drafting Resources or Giving Away Goods 
   6. Maintained Monopoly Power 
   7. Asymmetric or Private Information 
   8. Further Implications of Second-Best Modeling 
   9. The Scope of Government Intervention 
   10. Interpreting Second-Best Results 
   11. Model and Policy Sensitivity 
4. Similarities Between First-Best and Second-Best Analyses 
5. The Political Economy ...