Book , Print in English

Public finance

Harvey S. Rosen, Princeton University, Ted Gayer, Brookings Institution.
  • New York, NY : McGraw-Hill Education, [2014]
  • Tenth edition.
  • xxii, 586 pages : illustrations ; 27 cm
Subjects
Series
Contents
  • pt. I GETTING STARTED
  • ch. 1 Introduction
  • Public Finance and Ideology
  • Organic View of Government
  • Mechanistic View of Government
  • Viewpoint of This Book
  • Government at a Glance
  • Legal Framework
  • Size of Government
  • Expenditures
  • Revenues
  • Our Agenda
  • Summary
  • Discussion Questions
  • Appendix: Doing Research in Public Finance
  • ch. 2 Tools Of Positive Analysis
  • Role of Theory
  • Causation versus Correlation
  • Experimental Studies
  • Conducting an Experimental Study
  • Pitfalls of Experimental Studies
  • Observational Studies
  • Conducting an Observational Study
  • Pitfalls of Observational Studies
  • Quasi-Experimental Studies
  • Conducting a Quasi-Experimental Study
  • Pitfalls of Quasi-Experimental Studies
  • Conclusions
  • Summary
  • Discussion Questions
  • ch. 3 Tools Of Normative Analysis
  • Welfare Economics
  • Pure Economy Exchange
  • Production Economy
  • First Fundamental Theorem of Welfare Economics
  • Fairness and the Second Fundamental Theorem of Welfare Economics
  • Market Failure
  • Market Power
  • Nonexistence of Markets
  • Overview
  • Buying into Welfare Economics
  • Summary
  • Discussion Questions
  • pt. II Public Expenditure: Public Goods And Externalities
  • ch. 4 Public Goods
  • Public Goods Defined
  • Efficient Provision of Public Goods
  • Deriving the Efficiency Condition
  • Problems in Achieving Efficiency
  • Free Rider Problem
  • Privatization
  • Public versus Private Provision
  • Public versus Private Production
  • Public Goods and Public Choice
  • Summary
  • Discussion Questions
  • ch. 5 Externalities
  • Nature of Externalities
  • Graphical Analysis
  • Implications
  • Conclusion
  • Private Responses
  • Bargaining and the Coase Theorem
  • Mergers
  • Social Conventions
  • Public Responses to Externalities: Taxes and Subsidies
  • Taxes
  • Subsidies
  • Public Responses to Externalities: Emissions Fees and Cap-and-Trade Programs
  • Emissions Fee
  • Cap-and-Trade
  • Emissions Fee versus Cap-and-Trade
  • Command-and-Control Regulation
  • Us Response
  • Progress with Incentive-Based Approaches
  • Implications for Income Distribution
  • Who Benefits?
  • Who Bears the Cost?
  • Positive Externalities
  • Cautionary Note
  • Summary
  • Discussion Questions
  • ch. 6 Political Economy
  • Direct Democracy
  • Unanimity Rules
  • Majority Voting Rules
  • Logrolling
  • Arrow's Impossibility Theorem
  • Representative Democracy
  • Elected Politicians
  • Public Employees
  • Special Interests
  • Other Actors
  • Explaining Government Growth
  • Conclusion
  • Summary
  • Discussion Questions
  • ch. 7 Education
  • Justifying Government Intervention in Education
  • Is Education a Public Good?
  • Does Education Generate Positive Externalities?
  • Is the Education Market Inequitable?
  • What Can Government Intervention in Education Accomplish?
  • Does Government Intervention Crowd Out Private Education?
  • Does Government Spending Improve Educational Outcomes?
  • Public Spending and the Quality of Education
  • Does Education Increase Earnings?
  • New Directions for Public Education
  • Charter Schools
  • Vouchers
  • School Accountability
  • Summary
  • Discussion Questions
  • ch. 8 Cost-Benefit Analysis
  • Present Value
  • Projecting Present Dollars into the Future
  • Projecting Future Dollars into the Present
  • Inflation
  • Private Sector Project Evaluation
  • Internal Rate of Return
  • Benefit-Cost Ratio
  • Discount Rate for Government Projects
  • Rates Based on Returns in the Private Sector
  • Social Discount Rate
  • Discounting and the Economics of Climate Change
  • Government Discounting in Practice
  • Valuing Public Benefits And Costs
  • Market Prices
  • Adjusted Market Prices
  • Consumer Surplus
  • Inferences from Economic Behavior
  • Valuing Intangibles
  • Games Cost-Benefit Analysts Play
  • Chain-Reaction Game
  • Labor Game
  • Double-Counting Game
  • Distributional Considerations
  • Uncertainty
  • Application: Are Reductions in Class Size Worth It?
  • Discount Rate
  • Costs
  • Benefits
  • Bottom Line and Evaluation
  • Use (and Nonuse) by Government
  • Summary
  • Discussion Questions
  • Appendix: Calculating the Certainty Equivalent Value
  • pt. III Public Expenditure: Social Insurance And Income Maintenance
  • ch. 9 Health Care Market
  • What's Special about Health Care?
  • Role of Insurance
  • Role of Risk Pooling
  • Adverse Selection in the Health Insurance Market
  • Insurance and Moral Hazard
  • Other Information Problems in the Health Care Market
  • Externalities of Health Care
  • Do We Want Efficient Provision of Health Care?
  • Paternalism
  • Problem of the Uninsured
  • High Health Care Costs
  • Summary
  • Discussion Questions
  • ch. 10 Government And The Market For Healthcare
  • Private Health Insurance
  • Implicit Subsidy for Employer-Provided Insurance
  • Advantages of Employer-Provided Health Insurance
  • Employer-Provided Health Insurance and Job Lock
  • Cost Control and Private Insurance
  • Government Provision of Health Insurance: Medicare and Medicaid
  • Medicare: Overview
  • Cost Control under Medicare
  • Medicare: Impacts on Spending and Health
  • Medicaid: Overview
  • Medicaid: Impacts on Health
  • Affordable Care Act of 2010
  • Alternative Paths to Health Care Reform
  • Single-Payer Approach
  • Market-Oriented Approach
  • Final Thoughts
  • Summary
  • Discussion Questions
  • ch. 11 Social Security
  • Why Have Social Security?
  • Consumption Smoothing and the Annuity Market
  • Adverse Selection and the Annuity Market
  • Other Justifications
  • Structure of Social Security
  • Basic Components
  • Distributional Issues
  • Trust Fund
  • Effects of Social Security on Economic Behavior
  • Saving Behavior
  • Retirement Decisions
  • Implications
  • Long-Term Stresses on Social Security
  • Social Security Reform
  • Maintain the Current System
  • Privatize the System
  • Conclusions
  • Summary
  • Discussion Questions
  • ch. 12 Income Redistribution: Conceptual Issues
  • Distribution of Income
  • Interpreting the Distributional Data
  • Rationales for Income Redistribution
  • Simple Utilitarianism
  • Maximin Criterion
  • Pareto Efficient Income Redistribution
  • Nonindividualistic Views
  • Other Considerations
  • Expenditure Incidence
  • Relative Price Effects
  • Public Goods
  • Valuing In-Kind Transfers
  • Reasons for In-Kind Transfers
  • Conclusion
  • Summary
  • Discussion Questions
  • ch. 13 Expenditure Programs For The Poor
  • Quick Look at Welfare Spending
  • TANF
  • Income Maintenance and Work Incentives
  • Basic Trade-Offs
  • Analysis of Work Incentives
  • Work Requirements
  • Tune Limits
  • Family Structure
  • National versus Stale Administration
  • Earned Income Tax Credit
  • Supplemental Security Income
  • Medicaid
  • Unemployment Insurance
  • Benefits
  • Financing
  • Effects on Unemployment
  • Supplemental Nutrition Assistance Program (SNAP)
  • Housing Assistance
  • Programs to Enhance Earnings
  • Education
  • Employment and Job Training
  • Overview
  • Summary
  • Discussion Questions
  • pt. IV Framework For Tax Analysis
  • ch. 14 Taxation And Income Distribution
  • Tax Incidence: General Remarks
  • Only People Can Bear Taxes
  • Both Sources and Uses of Income Should Be Considered
  • Incidence Depends on How Prices Are Determined
  • Incidence Depends on the Disposition of Tax Revenues
  • Tax Progressiveness Can Be Measured in Several Ways
  • Partial Equilibrium Models
  • Unit Taxes on Commodities
  • Ad Valorem Taxes
  • Taxes on Factors
  • Commodity Taxation without Competition
  • Profits Taxes
  • Tax Incidence and Capitalization
  • General Equilibrium Models
  • Tax Equivalence Relations
  • Harberger Model
  • Analysis of Various Taxes
  • Some Qualifications
  • Applied Incidence Study
  • Conclusions
  • Summary
  • Discussion Questions
  • ch. 15 Taxation And Efficiency
  • Excess Burden Defined
  • Questions and Answers
  • Excess Burden Measurement with Demand Curves
  • Preexisting Distortions
  • Excess Burden of a Subsidy
  • Excess Burden of Income Taxation
  • Differential Taxation of Inputs
  • Does Efficient Taxation Matter?
  • Summary
  • Discussion Questions
  • ch. 16 Efficient And Equitable Taxation
  • Optimal Commodity Taxation
  • Ramsey Rule
  • Equity Considerations
  • Summary
  • Application: Taxation of the Family
  • Optimal User Fees
  • Overview
  • Optimal Income Taxation
  • Edgeworth's Model
  • Modern Studies
  • Politics and the Time Inconsistency Problem
  • Other Criteria for Tax Design
  • Horizontal Equity
  • Costs of Running the Tax System
  • Tax Evasion
  • Overview
  • Summary
  • Discussion Questions
  • pt. V United States Revenue System
  • ch. 17 Personal Income Tax
  • Basic Structure
  • Defining Income
  • Items Included in H-S Income
  • Some Practical and Conceptual Problems
  • Evaluating the H-S Criterion
  • Excluded Forms of Money Income
  • Interest on State and Local Bonds
  • Some Dividends
  • Capital Gains
  • Employer Contributions to Benefit Plans
  • Some Types of Saving
  • Gifts and Inheritances
  • Exemptions and Deductions
  • Exemptions
  • Deductions
  • Impact on the Tax Base
  • Tax Expenditures
  • Simplicity Issue
  • Rate Structure
  • Effective versus Statutory Rates
  • Taxes and Inflation
  • How Inflation Affects Taxes
  • Tax Indexing
  • Alternative Minimum Tax
  • Choice of Unit and the Marriage Tax
  • Background --
  • Contents note continued: Analyzing the Marriage Tax
  • Treatment of International Income
  • State Income Taxes
  • Summary
  • Discussion Questions
  • ch. 18 Personal Taxation And Behavior
  • Labor Supply
  • Theoretical Considerations
  • Some Caveats
  • Labor Supply and Tax Revenues
  • Saving
  • Empirical Evidence
  • Tax-Preferred Savings Accounts
  • Taxes and the Capital Shortage
  • Housing Decisions
  • Proposals for Change
  • Portfolio Composition
  • Note on Politics and Elasticities
  • Summary
  • Discussion Questions
  • ch. 19 Corporation Tax
  • Why Tax Corporations?
  • Structure
  • Employee Compensation Deducted
  • Interest, but Not Dividends, Deducted
  • Depreciation Deducted
  • Investment Tax Credit
  • Treatment of Dividends versus Retained Earnings
  • Effective Tax Rate on Corporate Capital
  • Incidence and Excess Burden
  • Tax on Corporate Capital
  • Tax on Economic Profits
  • Effects on Behavior
  • Total Physical Investment
  • Types of Assets
  • Corporate Finance
  • State Corporation Taxes
  • Taxation of Multinational Corporations
  • Global versus Territorial Taxation
  • Corporation Tax Reform
  • Full Integration
  • Dividend Relief
  • Summary
  • Discussion Questions
  • ch. 20 Deficit Finance
  • How Big Is the Debt?
  • Interpreting Deficit and Debt Numbers
  • Summing Up
  • Burden of the Debt
  • One Hand Borrows from the Other
  • Overlapping Generations Model
  • Neoclassical Model
  • Ricardian Model
  • Overview
  • To Tax or to Borrow?
  • Benefits-Received Principle
  • Intergenerational Equity
  • Efficiency Considerations
  • Deficits and Functional Finance
  • Federal Debt and the Risk of a Fiscal Crisis
  • Moral and Political Considerations
  • Controlling the Deficit
  • Overview
  • Summary
  • Discussion Questions
  • ch. 21 Fundamental Tax Reform: Taxes On Consumption And Wealth
  • Efficiency and Equity of Personal Consumption Taxes
  • Efficiency Issues
  • Equity Issues
  • Retail Sales Tax
  • Rationalizations
  • Efficiency and Distributional Implications of State Sales Taxes
  • National Retail Sales Tax?
  • Value-Added Tax
  • Implementation Issues
  • VAT for the United States?
  • Hall-Rabushka Flat Tax
  • Cash-Flow Tax
  • Income versus Consumption Taxation
  • Advantages of a Consumption Tax
  • Disadvantages of a Consumption Tax
  • Problems with Both Systems
  • Wealth Taxes
  • Estate and Gift Taxes
  • Rationales
  • Provisions
  • Reforming Estate and Gift Taxes
  • Prospects for Fundamental Tax Reform
  • Summary
  • Discussion Questions
  • pt. VI Multigovernment Public Finance
  • ch. 22 Public Finance In A Federal System
  • Background
  • Community Formation
  • Tiebout Model
  • Tiebout's Assumptions
  • Tiebout and the Real World
  • Optimal Federalism
  • Disadvantages of a Decentralized System
  • Advantages of a Decentralized System
  • Implications
  • Public Education in a Federal System
  • Property Tax
  • Incidence and Efficiency Effects
  • Why Do People Hate the Property Tax So Much?
  • Intergovernmental Grants
  • Types of Grants
  • Flypaper Effect
  • Overview
  • Summary
  • Discussion Questions.
Other information
  • Includes bibliographical references (pages 559-572) and indexes.
ISBN
  • 9780078021688 (acid-free paper)
  • 0078021685 (acid-free paper)
Identifying numbers
  • LCCN: 2013019748
  • OCLC: 844774953
  • OCLC: 844774953