The long awaited revision of a classic text by an expert author team.

Part 1. Role and Size of the Public Sector 1 Defining Public Sector Responsibilities 2 Measuring Public Sector Size Part 2 Fundamentals of Welfare Economics 3 Market Efficiency 4 Market Failure 5 Public Goods and Publicly Provided Private Goods 6 Externalities and the Evironment 7 Efficiency and Equity Part 3 Public Expenditure Theory 8 Public Production of Goods and Services 9 Public Choice Part 4 Public Expenditure in Practice 10 Framework for Analysis of Expenditure Policy 11 Evaluating Public Expenditure 12 Defense, Research and Technology 13 Health Care 14 Education 15 Welfare Programs and the Redistribution of Income 16 Social Insurance Part 5 Taxation in Theory 17 Introduction to Taxation 18 Tax Incidence 19 Taxation and Economic Efficiency 20 Optimal Taxation 21 Taxation of Capital Part 6 Taxation in Practice 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 Intergovernmental Fiscal Relations 27 Subnational Taxes and Expenditures 28 Fiscal Deficit and Government Debt