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Public Finance

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ISBN-10: 0073375748

ISBN-13: 9780073375748

Edition: 2009

Authors: Laurence S. Seidman

List price: $168.00
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Public Finance is an approachable text designed with students in mind. The 13 chapters are intentionally written to be taught easily in one semester without skipping material or losing any information. Public Finance contains all the necessary tools and core chapters that are integral to any Public Finance course in a clear and easy-to-read format. The concise sections and lucid examples are engaging for students, without being dense or tedious. This First Edition text incorporates research from across the discipline and provides empirical tie-ins to the real world. The author also covers special topic chapters that define public finance, like education, social security, and healthcare.
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Book details

List price: $168.00
Copyright year: 2009
Publisher: McGraw-Hill Higher Education
Publication date: 9/26/2008
Binding: Hardcover
Pages: 384
Size: 8.50" wide x 11.00" long x 1.00" tall
Weight: 1.980
Language: English

About the Author
A Note to Professors
Introduction to Public Finance
The Role of Government in Making a Free Market Possible
Why the Free Market Usually Works Well for Consumers
Taxes, Subsidies, Regulations, and Inefficiency
Problems for the Free Market
Externalities: Chapters 2 and 6
Public Goods: Chapter 3
Social Insurance: Chapters 5 and 6
Income Distribution, Taxation, and Efficiency: Chapters 7, 8, and 9
Education: Chapter 11
Low-Income Assistance: Chapter 12
Problems for the Government
Political Economy: Chapter 3
Cost-Benefit Analysis: Chapter 4
Which Level of Government? Chapter 10
Borrowing Instead of Taxing: Chapter 13
Taxes and Government Spending in the United States
Key Terms
The Indifference-Curve/Budget-Line Diagram
Externalities and the Environment
The Economist's Approach to Pollution
Environmental Pollution
Coase's Prescription When Victims Are Few: Assign a Property Right
The Trade-Off between Environmental Quality and Output
The Virtues of Pollution Prices
Objections to Pollution Prices and Economists' Responses
Charging a Price versus Mandating or Subsidizing Clean Technologies
Economic Analysis of a Pollution Tax and Tradable Permits
A Pollution Tax
Tradable Permits
Applications: Acid Rain and Global Warming
Tradable Permits for Sulfur Dioxide to Reduce Acid Rain
A Carbon Tax or Tradable Permits to Reduce Global Warming
Box-Case Study: A Carbon Tax versus a Carbon Cap and Trade Program
Key Terms
Public Goods and Political Economy
The Concept of a Public Good
Nonexcludability, the Free-Rider Problem, and Taxation
Who Should Produce a Public Good?
The Island Wall
Box-Current Research: Optimal Protection against Crime
Political Economy
Political Economy on the Island
Box-Case Study: A Global Public Good: Military Protection of a Valuable World Resource
The Behavior of Government
Voting, Legislators, Policies, and Elections
Box-Why Does an Individual Citizen Vote?
Lobbying, Special Interests, Campaigns, Bureaucracies, and Corruption
Box-Case Study: The Politics of Subsidies and Tariffs
Public Choice, Government Failure, and Constitutions
Key Terms
Cost-Benefit Analysis
Cost-Benefit Analysis
A Private Firm
Building a Factory
Building a Highway
Benefits of Improving the Safety of a Highway
Box-In the News: The 2007 Minneapolis Interstate Highway Bridge Collapse
The Value of a Statistical Life
Mistakes to Avoid
Reducing Global Warming
Uncertainty and the Risk of Catastrophe
The Social Discount Rate
Cost-Effectiveness Analysis
Box-Current Research: The Debate over the 2006 Stern Review on Global Warming
Paying for a Costly Medical Treatment
Intervening Militarily
Box-Case Study: The 2003 U.S. Military Intervention in Iraq
Key Terms
Social Security
Four Ways to Prepare for Retirement
Workers Support Retirees
Each Generation Self-Sufficient
The Rate of Return
Box-The Derivation of r* = g[subscript L] + g[subscript W] + g[subscript L]g[subscript W] When Workers Support Retirees
The Impact on the Economy
Breaking Out Is Hard to Do
Defined Benefit versus Defined Contribution
The U.S. Social Security System
Description of the Current U.S. Social Security Program
The Impact on Work
The Impact on Saving, Investment, and Capital Accumulation
The Impact on Retirement
Reforming Social Security
Treating the 2040 Problem
Box-Case Study: The Clash of Two Distinguished Economists over Social Security
Making Each Generation Self-Sufficient
Collective Self-Sufficiency
Individual Self-Sufficiency: Individual Investment Accounts
Combinations and Compromises
Box-In the News: The Bush Administration's Social Security Proposal
Key Terms
Social Security
Health Insurance
Health Insurance in the United States
Principles of Health Insurance
The Genesis of Health Insurance
Starting a Health Insurance Company
Moral Hazard and Price Responsiveness
Adverse Selection and Asymmetric Information
Catastrophic Insurance
X% Insurance
The Impact of Insurance on Efficiency and Redistribution
Limitation of Price and Supply by the Insurer
Features of the Health Insurance Markets
Patients, Doctors, and the Principal-Agent Problem
Regulation by Insurers
Employer-Provided Health Insurance
Who Bears the Burden of Employer-Provided Health Insurance?
Rising Medical Expenditures
The Role of Government
Medicaid and the State Children's Health Insurance Program
Alternative Public Policies for Working Families
Medicare for Retirees
Box-Current Research: Should Some Medical Care Be Rationed?
Health Insurance in Other Countries: An International Perspective
Key Terms
Health Insurance
Tax Incidence and Inefficiency
Incidence: Who Bears the Burden
People, Not Firms, Ultimately Bear All Tax Burdens
The Distribution of the Burden Depends on the Relative Elasticities
The Distribution of the Burden Doesn't Depend on Who Writes the Check
A Tax on Wage Income
A Tax on Capital Income
General Equilibrium Tax Incidence
The Efficiency Loss from a Tax on a Good
Optimal Commodity Taxation
The Efficiency Loss from a Tax on Wage Income
The Efficiency Loss from a Tax on Capital Income
A Lump-Sum Tax and the Marginal Tax Rate
The Revenue-Rate Curve
Key Terms
Tax Incidence and Inefficiency
Income Taxes
Mechanics of the U.S. Income Tax
Determining Your Income Tax
The Alternative Minimum Tax
Box-Case Study: A Brief History of the Top Income Tax Rate
Different Tax Schedules for Married Couples and Single Persons
Concepts Underlying the Income Tax
Ability to Pay
Proportional, Progressive, Regressive
Comprehensive Income
Credits versus Deductions
Should a Deduction or Credit Have a Ceiling or a Floor?
Particular Deductions, Exemptions, and Credits
Issues in Taxing Capital Income
Retirement Saving Incentives
Capital Gains
Business Income
The Corporate Income Tax
The Estate Tax
Issues in Taxing Labor Income
Household Taxation, Progressivity, and the Second Earner
A Labor Income Tax
The Payroll Tax
Key Terms
Consumption Taxes
A Retail Sales Tax
A Value-Added Tax
A Subtraction VAT
Comparing a VAT to a RST
Exemptions under a RST or a VAT
A Household Rebate with a RST or a VAT
The Flat Tax and the X Tax
A Household Consumption Tax
History of a Household Consumption Tax
Computing Household Consumption
A Progressive Consumption Tax on Very High Consumption
Replacing the Income Tax with a Consumption Tax
Impact on Saving
Impact on Efficiency Loss
Impact on the Distribution of the Tax Burden
A Consumption Tax versus a Labor Income Tax
Which Tax is Fairest?
Taxing What You Take versus Taxing What You Make
The Grasshopper and the Ants
Pollution Taxes
Transportation Taxes
Health Taxes
Key Terms
State and Local Public Finance
Optimal Federalism When Household Incomes are Similar
The Tiebout Process
State Government for Local Externalities or Scale Economies
Optimal Federalism When Household Incomes Differ
Residential Location When Incomes Differ: The Separation Process
Should a City Government Try to Tax Suburbanites?
Should a City Tax Economic Activity That Occurs within the City?
Should a City Set a High Tax Rate on Affluent Residents?
The Role of State Government When People Separate by Income
Box-Case Study: Should Suburbs Help Their Central City?
The Property Tax
The Mechanics of the Property Tax
The Distribution of a Residential Property Tax across Households
Who Bears the Burden of a Residential Property Tax?
Do Renters of Housing Bear a Burden from the Property Tax?
The Burden of a Property Tax on Land
The Burden of a Property Tax on Business Firms
Arguments for the Residential Property Tax for Local Governments
Criticisms of the Residential Property Tax for Local Governments
Grants from a Higher Government to Lower Governments
Purposes of Grants
Different Grants for Different Purposes
Key Terms
State and Local Public Finance
What Schools Do
Elementary and Secondary Education
Private Schools without Government
Private Schools with Vouchers from Government
Public Schools
Public Schools plus a Refundable Tax Credit for Private School Tuition
Tuition versus Taxes
The Public-Private School Tuition Gap
The Optimal Quality of a Public School
State Funding of Public Schools
State versus Local Funding of Public Schools
Improving Public Schools
Higher Education
The Costs and Benefits of Higher Education
Private Colleges without Government
Public Colleges with Tuition below Cost
Student Loans and Financial Aid
Box-Case Study: College Grants on a Postcard
Key Terms
Low-Income Assistance
Federal Spending to Assist Low-Income People
Unrestricted versus Restricted Assistance
The Earned Income Tax Credit
The Impact of Assistance on Poverty
Refundable Tax Credits
Unemployment Insurance
Key Terms
Low-Income Assistance
Government Borrowing
Government Debt
Deficit versus Debt
Commonsense Concern about Excessive Borrowing
The Burden of the Debt
Capital Expenditures
Government Borrowing, Interest Rates, and the Crowding Out of Investment
Balanced Budget
Disciplining Politicians with a Balanced Budget Rule
Box-Case Study: The Deficit and Interest Rates: An Estimate from U.S. Data
The Problem with an Always Balanced Budget Rule
A Normal Unemployment Balanced Budget Rule
Future Considerations
Fiscal Imbalance
Generational Accounting
Deficits, Debt, and Interest
U.S. Deficits, Debt, and Interest during the Past Half Century
Box-Deficits and Debt with Two Components of Government
The Deficit, Debt, and Interest as a Percentage of GDP
Inflation, Debt, and Deficits
The Long-Term Budget Outlook for the U.S.
Box-In the News: Is Medical Care the Primary Cause of the Long-Term Budget Problem?
Key Terms
Government Borrowing