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Advances in Public Economics (Paperback, Softcover reprint of the original 1st ed. 2000)
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Advances in Public Economics (Paperback, Softcover reprint of the original 1st ed. 2000)
Series: Studies in Empirical Economics
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Thisbookisacollectionofeightpapersthatwerepublished in aspecial
symposium issueofEmpirical Economicsdur- ing 1999. These papers
cover several areasofinterest in contemporary public economics,
including tax incidence, underground economy, welfare system,
fiscal federalism, public infrastructure and the growth of
government. The
contributionsutilizeavarietyofquantitativetoolsofanaly-
sis,includingappliedeconometrics,appliedgeneralequilib- rium
modeling analysis, technical efficiency analysis and institutional
analysis. The introductory essay in the book summarizes the
contributionsofapplied public economics papers
inthisbookandplacesthem inabroadercontextof
modempublicfinanceeconomictheory.Theobjectiveofthe
bookistomaketheseessaysavailableinaconvenientform
toscholarsandstudentsengaged inresearchonpublic pol-
icytopicsaswell astoinstructorsofcoursesinpubliceco- nomics, both
undergraduate and graduate. A briefmotiva-
tionforthebookisgivenbelow.
Thestudyofpubliceconomicshasexperiencedanumber of dramatic changes
during the past two decades. These changes have revolutionized, in
a fundamental way, the subjectofpublic economics. This is due
largely to several majordevelopments
ineconomictheory,includingtheroles ofinformation theory and game
theory along with its de- rivative theories, such as
designofinstitutions as well as inter-temporal analysis. These
economic theory develop- ments have altered in a fundamental way
the way econo- mists and policy analysts perceive the
roleofgovernment.
Alsothesedevelopmentshavecalledintoquestiontheabil-
ityofgovernmentstocarryoutsomeofitstraditionaltasks, particularly
the efficient design of redistribution and tax systems. The
theoretical research in public economics has
contributedtothedevelopmentofnew instrumentsand ap- proaches to
tackle problemsofeconomic policy in a more
effectivemanner.Giventhattheevaluationofpolicyoptions
requiresasoundunderstandingofboththenatureandmag-
nitudeofeconomic,behaviouralandinstitutionalconstraints Preface VI
thatarefaced bygovernments,there isaneedforempirical
analysisofunderlyingpolicyquestionsandissues.
Thiscollectionofessays on empirical finance indicates
thatempiricalassessmentispossibleusingarichanddiverse
setofempirical approaches. The various papers exemplify
someofthevarioustechniquesthatcan beused byapplied
researchersforsheddinglightonthequestionsofinterestin
appliedpublicfinanceanditsapplications.
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