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Public Finance, 4th Edition

by Richard W. Tresch

January 2022

Intermediate to advanced

568 pages

34h 12m

English

Academic Press

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The Fundamental Normative QuestionsGovernment Expenditure Theory: Philosophical UnderpinningsGovernment Expenditure Theory and Market FailureThe Government Sector in the United StatesThe Theory of TaxationFiscal FederalismThe Theory of Public ChoiceBehavioral Public FinanceSummary
A Baseline General Equilibrium ModelEfficiency: The Pareto Optimal ConditionsEquity: The Social Welfare Function and the Optimal Distribution of IncomeMaximizing Social WelfarePolicy Implications and Conclusions
Lump-Sum Redistributions and Public Sector TheoryFirst-Best AnalysisSecond-Best AnalysisSimilarities Between First-Best and Second-Best AnalysesThe Political Economy of the Social Welfare FunctionConclusion

Social Welfare and the Distribution of Income: The Atkinson FrameworkSocial Welfare and Consumption: The Jorgenson AnalysisSocial Welfare and Social Mobility
Policy-Relevant ExternalitiesThe Analysis of Externalities: Modeling Preliminaries
The Worst of All Worlds—All Goods (Factors) Are Pure Public Goods (Factors)The Existence of at Least One Pure Private GoodNonexclusive Goods—The Samuelson ModelAggregate Externalities
The Condensed Model for Production ExternalitiesAggregate Production ExternalitiesU.S. Antipollution Policy: The CAC ApproachConcluding Comments: The Problem of Nonconvex Production Possibilities
Consumption–Production ExternalitiesLegislating Pollution StandardsDefensive Antipollution StrategiesThe Kyoto Protocol, the Copenhagen Accord, and the Paris Climate AgreementLong-Lived ExternalitiesAdditional Issues
Decreasing Cost in General Equilibrium AnalysisReflections on U.S. Policy Regarding Decreasing Cost Services: The Public Interest in Equity and EfficiencyAppendix: Returns to Scale, Homogeneity, and Decreasing Cost
Public Choice and Pareto-Optimal RedistributionAltruism, Free Riding, and Crowding Out of Private CharityOther Motivations for Redistributive Transfers
Designing Broad-Based Taxes: The Economic ObjectivesAbility to Pay: Theoretical ConsiderationsHorizontal EquityVertical EquityReflections on the Haig–Simons Criterion in Practice: The Federal Personal Income TaxThe Inflationary Bias Against Income From CapitalTaxing Realized Gains: Auerbach’s Retrospective Taxation ProposalThe Taxation of Human CapitalSummary
A Brief History of Second-Best TheoryPhilosophical and Methodological UnderpinningsPreview of Part III
The Measurement of Loss From Distorting TaxesThe Optimal Pattern of Commodity Taxes
Many-Person Economies: Fixed Producer PricesMany-Person Economy With General Technology
Lump-Sum Redistributions and Private InformationRedistribution Through Commodity TaxationOptimal Taxation, Private Information, and Self-Selection ConstraintsOptimal Income TaxationTax EvasionConcluding Remarks
First-Best Theory, Second-Best Theory, and Tax IncidenceMethodological Differences in the Measurement of Tax IncidenceTheoretical Measures of Tax IncidenceThe Equivalence of General TaxesMeasuring Tax Incidence: A Many-Consumer EconomyThe Harberger AnalysisImportant Modifications of the Harberger Model
The Incidence of Government Transfer PaymentsTax and Expenditure Incidence With Decreasing-Cost ServicesSamuelsonian Nonexclusive GoodsEconomywide Incidence StudiesThe Sources and Uses ApproachComputable General Equilibrium Models of Tax IncidenceDynamic Tax Incidence
Tax Reform and Tax TheoryReforming the Tax BaseReforming the Personal Income Tax Rates
First-Best InsightsCash Transfers: Broad-Based or Targeted?Private Information and In-Kind Transfers
The Demand for InsuranceWithout InsuranceWith InsurancePrivate or Asymmetric InformationMoral HazardThe Competitive OutcomeThe Public Policy ResponseEx Post Moral HazardDeductibles and CopaymentsThe Value of AccessAdverse SelectionEx Post Versus Ex Ante EfficiencyThe Nature of Adverse SelectionAdvantageous SelectionA Two-Policy ModelIs an Equilibrium Possible?An Information-Enhanced R/S ModelPolicy Response to Adverse SelectionU.S. PoliciesMedicare and MedicaidPatient Protection and Affordable Care Act
The U.S. Social Security SystemSocial Security as Social InsuranceThe Macroeconomic Effects of Social SecuritySocial Security and SavingThe Structure of the Economy: Consumption, Production, and Market ClearanceConcluding Observations
The Second-Best Allocation of Samuelsonian Nonexclusive GoodsThe Coase Theorem, Bargaining, and Private Information
The Boiteux Problem: The Multiproduct Decreasing-Cost FirmConstrained Government Agencies
The Diamond–Mirrlees Problem: One-Consumer EconomyProduction Decisions With Nonoptimal TaxesSecond-Best Production Rules When Equity MattersConcluding Comments
The Behavioral AnomaliesProspect Theory: The Rejection of Expected Utility MaximizationPresent-Biased Preferences: Self-Control IssuesSocial PreferencesFraming Effects or Context DependenceMainstream ReactionsPositive and Normative Public Sector EconomicsProspect TheoryApplying Prospect TheoryNudges and Standard Policy PrescriptionsStandard Agents OnlyBehavioral Agents OnlyA Mixture of Standard and Behavioral AgentsNeoclassical Errors When Behavioral Anomalies OccurCan Mainstream and Behavioral Economic Theory Be Reconciled?RefinementsBehavioral Public Finance Following Bernheim/RangelReworking Optimal Tax TheoryA Final Word in Support of Behavioral Economics
The Potential for Incompatibilities and Destructive CompetitionSorting the Functions of Government Within the Fiscal HierarchyOptimal Federalism and the Distribution Function
The Modeling DimensionsJurisdiction Formation in Accordance With the Theory of ClubsFixed Communities and Housing Sites: Adding the Housing MarketAnything Is PossibleMobility and Redistribution
Optimal Federalism and Grants-in-Aid: Normative AnalysisAlternative Design CriteriaEstimating the Demand for State and Local Public ServicesThe Response to Grants-in-Aid
The Taxation of Mobile CapitalSummaryMultinational EnterprisesA Destination-Based Cash Flow TaxConcluding Observations

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Publisher Resources

ISBN: 9780323984157