A new edition of a comprehensive text updated throughout with new material on behavioral economics international taxation cost-benefit analysis and the economics of climate policy.Public economics studies how government taxing and spending activities affect the economy�economic efficiency and the distribution of income and wealth. This comprehensive text on public economics covers the core topics of market failure and taxation as well as recent developments in both policy and the academic literature. It is unique not only in its broad scope but in its balance between public finance and public choice and its combination of theory and relevant empirical evidence.The book covers the theory and methodology of public economicspresents a historical and theoretical overview of the public sectorand discusses such topics as departures from efficiency (including imperfect competition and asymmetric information) issues in political economy equity taxation fiscal federalism and tax competition among independent jurisdictions. Suggestions for further reading from classic papers to recent research appear in each chapter as do exercises. The mathematics has been kept to a minimum without sacrificing intellectual rigorthe book remains analytical rather than discursive. This second edition has been thoroughly updated throughout. It offers new chapters on behavioral economics limits to redistribution international taxation cost-benefit analysis and the economics of climate policy. Additional exercises have been added and many sections revised in response to advice from readers of the first edition.Read more
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