A longtime favorite among teachers and students, Economics of the Public Sector returns to the classroom in a fresh edition that has been fully revised to reflect the latest developments in public policy and economic research. Professor Stiglitz builds on the book's classic strengths: an integrated approach to public economics, a readable and inviting style, and careful attention to real-world problems and applications.

Part 1. Introduction 1 The Public Sector in a Mixed Economy 2 The Public Sector in the United States Part 2 Fundamentals of Welfare Economics 3 Market Efficiency 4 Market Failure 5 Efficiency and Equity Part 3 Public Expenditure Theory 6 Public Goods and Publicly Provided Private Goods 7 Public Choice 8 Public Production and Bureaucracy 9 Externalities and the Environment Part 4 Expenditure Programs 10 The Analysis of Expenditure Policy 11 Cost-Benefit Analysis 12 Health Care 13 Defense and Technology 14 Social Insurance 15 Welfare Programs and the Redistribution of Income 16 Education Part 5 Taxation: Theory 17 Introduction to Taxation 18 Tax Incidence 19 Taxation and Economic Efficiency 20 Optimal Taxation Part 6 Taxation in the United States 22 The Personal Income Tax 23 The Corporation Income Tax 24 A Student's Guide to Tax Avoidance 25 Reform of the Tax System Part 7 Further Issues 26 Fiscal Federalism 27 State and Local Taxes and Expenditures 28 Deficit Finance