Public Finance and Public Choice

• The diagrammatic approach provides a solid grounding in public economics without overwhelming the reader with unnecessary maths.
• Analyses the theory from public choice and behavioural public finance perspectives, critically examining what governments actually do in practice by using psychological research to better understand economic decisions.
• Sets the theory in the context of the European environment, where relevant, to ensure that students can see the application of the theory in their own government.

New to this edition

• A new chapter on behavioural public finance introduces students to this topical area of research.
• Developments in the area of pension provision have been added.
• Environmental issues and climate change are now covered, owing to their increasing importance to the government.

Readership: Students on economics degrees taking an advanced level module in public economics. The module can also be an option for students on politics, public administration, finance, or business programmes.

John Cullis, Reader in Economics, Centre for Development Studies, University of Bath, and Philip Jones, Professor of Economics, Department of Economics and International Development, University of Bath

1: Market performance: possibilities and prescriptions
2: Externalities
3: Public goods
4: Collective decision-making: searching for the 'public interest'
5: Rent-seeking, public provision and the 'return to the market'
6: Evaluation of public expenditure: cost-benefit analysis
7: Tax theory: the basic concepts
8: Tax evasion and the black economy
9: Income (re)distribution
10: Central government
11: Public choice aspects of macroeconomic policies
12: Local government
13: International issues and global goals
14: Optimal taxation
15: 'Behavioural public finance' and the role of the public sector
16: Public sector failure and public expenditure growth