Handbook of public economics

Abstract

This Handbook is a compilation of articles surveying different areas of Public Economics. The articles discuss how government intervention in the economy affects the allocation and distribution of an economy’s resources. The various purposes of government intervention are examined, including allocation (when market failure causes the private outcome to be Pareto inefficient), distribution (when the private market outcome leaves some individuals with unacceptably low shares in the fruits of the economy), and stabilization (when the private market outcome leaves some of the economy’s resources underutilized). Chapters discuss the efficiency and incidence of taxation, the effects of taxation on labor supply, savings, risk taking, and natural resources, public sector pricing, and the economics of the local public sector, income maintenance, and social insurance. – AI-generated abstract