Includes bibliographical references and indexes.

$a Preface; 1. Market possibilities and prescriptions; 2. Evaluating public finance policy: consumer surplus, welfare criteria and market failure; 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 in public finance; 14. Public sector failure and public expenditure growth; 15. 'Normative' optimal taxation; 16. 'Positive' optimal taxation; Author and Subject Index

$a Are the way in which governments tax and spend efficient, and are they equitable? These questions are central to public sector economics and this second edition of Public Finance and Public Choice illustrates the controversies which surround them. This new edition continues to focus on both the social optimality and public choice approaches but also includes alternative perspectives. This successful text has been extensively rewritten, offering further microeconomic insight and additional examples of the application of theory. New sections include: The private provision of public goods; Privatization; The quasi market; The EC budget; QALYs (Quality Adjusted Life Years); Public debt; The impact of the public sector on economic growth. This clearly written, rigorous text offers a complete course in the economics of the public sector. It will be an indispensable text for students studying public economics, and also for students taking technical public policy or public administration courses.