Public Finance 10th Edition by Harvey Rosen, Ted Gayer – Ebook PDF Instant Download/Delivery: 0077498763, 9780077498764
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ISBN 10: 0077498763
ISBN 13: 9780077498764
Author: Harvey Rosen, Ted Gayer
Public Finance benefits from the combined efforts of Harvey Rosen’s market-leading book and co-author Ted Gayer’s research and government agency experience. This combination of experience is able to explain as clearly as possible how the tools of economics can be used to analyze government expenditure and tax policies. This new edition incorporates recent developments and along the way takes students to the frontiers of current research and policy. While the information presented is cutting edge and reflects the work of economists currently active in the field the approach makes the text accessible to undergraduates whose only prior exposure to economics is at the introductory level. All of the changes in the Tenth edition were made to further the authors’ goal of providing students with a clear and coherent view of the role of government spending and taxation. The authors’ years of policy experience have convinced themselves that modern public finance provides a practical and invaluable framework for thinking about policy issues. The goal is simple: to emphasize the links between sound economics and the analysis of real-world policy problems.Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need when they need it and how they need it so that your class time is more engaging and effective.
Public Finance 10th Table of contents:
PART I: GETTING STARTED
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CHAPTER 1: INTRODUCTION
- Public Finance and Ideology
- Organic View of Government
- Mechanistic View of Government
- Viewpoint of This Book
- Government at a Glance
- The Legal Framework
- The Size of Government
- Expenditures
- Revenues
- Our Agenda
- Summary
- Discussion Questions
- Appendix: Doing Research in Public Finance
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CHAPTER 2: TOOLS OF POSITIVE ANALYSIS
- The Role of Theory
- Causation versus Correlation
- Experimental Studies
- Conducting an Experimental Study
- Pitfalls of Experimental Studies
- Observational Studies
- Conducting an Observational Study
- Pitfalls of Observational Studies
- Quasi-Experimental Studies
- Conducting a Quasi-Experimental Study
- Pitfalls of Quasi-Experimental Studies
- Conclusions
- Summary
- Discussion Questions
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CHAPTER 3: TOOLS OF NORMATIVE ANALYSIS
- Welfare Economics
- Pure Economy Exchange
- Production Economy
- The First Fundamental Theorem of Welfare Economics
- Fairness and the Second Fundamental Theorem of Welfare Economics
- Market Failure
- Market Power
- Nonexistence of Markets
- Overview
- Buying into Welfare Economics
- Summary
- Discussion Questions
PART II: PUBLIC EXPENDITURE: PUBLIC GOODS AND EXTERNALITIES
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CHAPTER 4: PUBLIC GOODS
- Public Goods Defined
- Efficient Provision of Public Goods
- Deriving the Efficiency Condition
- Problems in Achieving Efficiency
- The Free Rider Problem
- Privatization
- Public versus Private Provision
- Public versus Private Production
- Public Goods and Public Choice
- Summary
- Discussion Questions
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CHAPTER 5: EXTERNALITIES
- The Nature of Externalities
- Graphical Analysis
- Implications
- Conclusion
- Private Responses
- Bargaining and the Coase Theorem
- Mergers
- Social Conventions
- Public Responses to Externalities: Taxes and Subsidies
- Taxes
- Subsidies
- Public Responses to Externalities: Emissions Fees and Cap-and-Trade Programs
- Emissions Fee
- Cap-and-Trade
- Emissions Fee versus Cap-and-Trade
- Command-and-Control Regulation
- The US Response
- Progress with Incentive-Based Approaches
- Implications for Income Distribution
- Who Benefits?
- Who Bears the Cost?
- Positive Externalities
- A Cautionary Note
- Summary
- Discussion Questions
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CHAPTER 6: POLITICAL ECONOMY
- Direct Democracy
- Unanimity Rules
- Majority Voting Rules
- Logrolling
- Arrow’s Impossibility Theorem
- Representative Democracy
- Elected Politicians
- Public Employees
- Special Interests
- Other Actors
- Explaining Government Growth
- Conclusion
- Summary
- Discussion Questions
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CHAPTER 7: EDUCATION
- Justifying Government Intervention in Education
- Is Education a Public Good?
- Does Education Generate Positive Externalities?
- Is the Education Market Inequitable?
- What Can Government Intervention in Education Accomplish?
- Does Government Intervention Crowd Out Private Education?
- Does Government Spending Improve Educational Outcomes?
- Public Spending and the Quality of Education
- Does Education Increase Earnings?
- New Directions for Public Education
- Charter Schools
- Vouchers
- School Accountability
- Summary
- Discussion Questions
- Justifying Government Intervention in Education
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CHAPTER 8: COST-BENEFIT ANALYSIS
- Present Value
- Projecting Present Dollars into the Future
- Projecting Future Dollars into the Present
- Inflation
- Private Sector Project Evaluation
- Internal Rate of Return
- Benefit-Cost Ratio
- Discount Rate for Government Projects
- Rates Based on Returns in the Private Sector
- Social Discount Rate
- Discounting and the Economics of Climate Change
- Government Discounting in Practice
- Valuing Public Benefits And Costs
- Market Prices
- Adjusted Market Prices
- Consumer Surplus
- Inferences from Economic Behavior
- Valuing Intangibles
- Games Cost-Benefit Analysts Play
- The Chain-Reaction Game
- The Labor Game
- The Double-Counting Game
- Distributional Considerations
- Uncertainty
- An Application: Are Reductions in Class Size Worth It?
- Discount Rate
- Costs
- Benefits
- The Bottom Line and Evaluation
- Use (and Nonuse) by Government
- Summary
- Discussion Questions
- Appendix: Calculating the Certainty Equivalent Value
- Present Value
PART III: PUBLIC EXPENDITURE: SOCIAL INSURANCE AND INCOME MAINTENANCE
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CHAPTER 9: THE HEALTH CARE MARKET
- What’s Special about Health Care?
- The Role of Insurance
- The Role of Risk Pooling
- Adverse Selection in the Health Insurance Market
- Insurance and Moral Hazard
- Other Information Problems in the Health Care Market
- Externalities of Health Care
- Do We Want Efficient Provision of Health Care?
- Paternalism
- The Problem of the Uninsured
- High Health Care Costs
- Summary
- Discussion Questions
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CHAPTER 10: GOVERNMENT AND THE MARKET FOR HEALTH CARE
- Private Health Insurance
- The Implicit Subsidy for Employer-Provided Insurance
- The Advantages of Employer-Provided Health Insurance
- Employer-Provided Health Insurance and Job Lock
- Cost Control and Private Insurance
- Government Provision of Health Insurance: Medicare and Medicaid
- Medicare: Overview
- Cost Control under Medicare
- Medicare: Impacts on Spending and Health
- Medicaid: Overview
- Medicaid: Impacts on Health
- Affordable Care Act of 2010
- Alternative Paths to Health Care Reform
- Single-Payer Approach
- Market-Oriented Approach
- Final Thoughts
- Summary
- Discussion Questions
- Private Health Insurance
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CHAPTER 11: SOCIAL SECURITY
- Why Have Social Security?
- Consumption Smoothing and the Annuity Market
- Adverse Selection and the Annuity Market
- Other Justifications
- Structure of Social Security
- Basic Components
- Distributional Issues
- The Trust Fund
- Effects of Social Security on Economic Behavior
- Saving Behavior
- Retirement Decisions
- Implications
- Long-Term Stresses on Social Security
- Social Security Reform
- Maintain the Current System
- Privatize the System
- Conclusions
- Summary
- Discussion Questions
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CHAPTER 12: INCOME REDISTRIBUTION: CONCEPTUAL ISSUES
- Distribution of Income
- Interpreting the Distributional Data
- Rationales for Income Redistribution
- Simple Utilitarianism
- The Maximin Criterion
- Pareto Efficient Income Redistribution
- Nonindividualistic Views
- Other Considerations
- Expenditure Incidence
- Relative Price Effects
- Public Goods
- Valuing In-Kind Transfers
- Reasons for In-Kind Transfers
- Conclusion
- Summary
- Discussion Questions
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CHAPTER 13: EXPENDITURE PROGRAMS FOR THE POOR
- A Quick Look at Welfare Spending
- TANF
- Income Maintenance and Work Incentives
- The Basic Trade-Offs
- Analysis of Work Incentives
- Work Requirements
- Time Limits
- Family Structure
- National versus State Administration
- The Earned Income Tax Credit
- Supplemental Security Income
- Medicaid
- Unemployment Insurance
- Benefits
- Financing
- Effects on Unemployment
- Supplemental Nutrition Assistance Program (SNAP)
- Housing Assistance
- Programs to Enhance Earnings
- Education
- Employment and Job Training
- Overview
- Summary
- Discussion Questions
PART IV: FRAMEWORK FOR TAX ANALYSIS
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CHAPTER 14: TAXATION AND INCOME DISTRIBUTION
- Tax Incidence: General Remarks
- Only People Can Bear Taxes
- Both Sources and Uses of Income Should Be Considered
- Incidence Depends on How Prices Are Determined
- Incidence Depends on the Disposition of Tax Revenues
- Tax Progressiveness Can Be Measured in Several Ways
- Partial Equilibrium Models
- Unit Taxes on Commodities
- Ad Valorem Taxes
- Taxes on Factors
- Commodity Taxation without Competition
- Profits Taxes
- Tax Incidence and Capitalization
- General Equilibrium Models
- Tax Equivalence Relations
- The Harberger Model
- Analysis of Various Taxes
- Some Qualifications
- An Applied Incidence Study
- Conclusions
- Summary
- Discussion Questions
- Tax Incidence: General Remarks
-
CHAPTER 15: TAXATION AND EFFICIENCY
- Excess Burden Defined
- Questions and Answers
- Excess Burden Measurement with Demand Curves
- Preexisting Distortions
- The Excess Burden of a Subsidy
- The Excess Burden of Income Taxation
- Differential Taxation of Inputs
- Does Efficient Taxation Matter?
- Summary
- Discussion Questions
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CHAPTER 16: EFFICIENT AND EQUITABLE TAXATION
- Optimal Commodity Taxation
- The Ramsey Rule
- Equity Considerations
- Summary
- Application: Taxation of the Family
- Optimal User Fees
- Overview
- Optimal Income Taxation
- Edgeworth’s Model
- Modern Studies
- Politics and the Time Inconsistency Problem
- Other Criteria for Tax Design
- Horizontal Equity
- Costs of Running the Tax System
- Tax Evasion
- Overview
- Summary
- Discussion Questions
- Optimal Commodity Taxation
PART V: THE UNITED STATES REVENUE SYSTEM
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CHAPTER 17: THE PERSONAL INCOME TAX
- Basic Structure
- Defining Income
- Items Included in H-S Income
- Some Practical and Conceptual Problems
- Exemptions and Deductions
- Exemptions
- Deductions
- Impact on the Tax Base
- Tax Expenditures
- The Simplicity Issue
- Rate Structure
- Effective versus Statutory Rates
- Taxes and Inflation
- Tax Indexing
- The Alternative Minimum Tax
- Choice of Unit and the Marriage Tax
- Background
- Analyzing the Marriage Tax
- Treatment of International Income
- State Income Taxes
- Summary
- Discussion Questions
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CHAPTER 18: PERSONAL TAXATION AND BEHAVIOR
- Labor Supply
- Theoretical Considerations
- Some Caveats
- Labor Supply and Tax Revenues
- Saving
- Empirical Evidence
- Tax-Preferred Savings Accounts
- Taxes and the Capital Shortage
- Housing Decisions
- Proposals for Change
- Portfolio Composition
- A Note on Politics and Elasticities
- Summary
- Discussion Questions
- Labor Supply
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CHAPTER 19: THE CORPORATION TAX
- Why Tax Corporations?
- Structure
- Employee Compensation Deducted
- Interest, but Not Dividends, Deducted
- Depreciation Deducted
- Investment Tax Credit
- Treatment of Dividends versus Retained Earnings
- Effective Tax Rate on Corporate Capital
- Incidence and Excess Burden
- A Tax on Corporate Capital
- A Tax on Economic Profits
- Effects on Behavior
- Total Physical Investment
- Types of Assets
- Corporate Finance
- State Corporation Taxes
- Taxation of Multinational Corporations
- Global versus Territorial Taxation
- Corporation Tax Reform
- Full Integration
- Dividend Relief
- Summary
- Discussion Questions
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CHAPTER 20: DEFICIT FINANCE
- How Big Is the Debt?
- Interpreting Deficit and Debt Numbers
- The Burden of the Debt
- One Hand Borrows from the Other
- An Overlapping Generations Model
- Neoclassical Model
- Ricardian Model
- To Tax or to Borrow?
- Benefits-Received Principle
- Intergenerational Equity
- Efficiency Considerations
- Deficits and Functional Finance
- Federal Debt and the Risk of a Fiscal Crisis
- Moral and Political Considerations
- Controlling the Deficit
- Summary
- Discussion Questions
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CHAPTER 21: FUNDAMENTAL TAX REFORM: TAXES ON CONSUMPTION AND WEALTH
- Efficiency and Equity of Personal Consumption Taxes
- Efficiency Issues
- Equity Issues
- Retail Sales Tax
- Rationalizations
- Efficiency and Distributional Implications of State Sales Taxes
- A National Retail Sales Tax?
- Value-Added Tax
- Implementation Issues
- A VAT for the United States?
- Hall-Rabushka Flat Tax
- Cash-Flow Tax
- Income versus Consumption Taxation
- Advantages of a Consumption Tax
- Disadvantages of a Consumption Tax
- Problems with Both Systems
- Wealth Taxes
- Estate and Gift Taxes
- Rationales
- Provisions
- Reforming Estate and Gift Taxes
- Prospects for Fundamental Tax Reform
- Summary
- Discussion Questions
PART VI: MULTIGOVERNMENT PUBLIC FINANCE
- CHAPTER 22: PUBLIC FINANCE IN A FEDERAL SYSTEM
- Background
- Community Formation
- The Tiebout Model
- Tiebout’s Assumptions
- Tiebout and the Real World
- Optimal Federalism
- Disadvantages of a Decentralized System
- Advantages of a Decentralized System
- Implications
- Public Education in a Federal System
- Property Tax
- Property Tax
- Intergovernmental Grants
- Optimal Level of Federalism
- Summary
- Discussion Questions
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