PART ONE THE ANALYSIS OF POLICY
Lecture 1 Introduction: Public Economics
Introduction
Role of the Government
Guide to the Lectures
Note: The Public Sector-Statistical Background
Lecture 2 Household Decisions, Income Taxation, and Labour Supply
Introduction
Income Taxation and Labour Supply
Broader Models of Labour Supply
Empirical Evidence on Labour Supply
Concluding Comments
Note on the Expenditure Function
Reading
Lecture 3 Taxation, Savings, and Decisions over Time
Intertemporal Decisions and Taxation
The Basic Intertemporal Model
Developments of the Model and Alternative Views
Empirical Evidence-Taxation and the Interest Elasticity of Savings
Concluding Comments
Reading
Lecture 4 Taxation and Risk-Taking
Risk-Taking and Portfolio Allocation
Effects of Taxation
Special Provisions of the Tax System
Generalization of Results
Concluding Comments
Note on Risk Aversion
Reading
Lecture 5 Taxation and the Firm
Taxes and the Firm
Corporation Tax and the Cost of Capital
Taxation and Investment
A Wider View of Investment
Empirical Investigation of Taxation and Investment
Concluding Comments
Reading
Lecture 6 Tax Incidence: Simple Competitive Equilibrium Model
Introduction: Tax Incidence
Static Two-Sector Model
Incidence of Corporation Tax
General Tax Incidence
Incidence in a Two-Class Economy
Numerical Applications of the Model
Concluding Comments
Note on the Cost Function
Reading
Lecture 7 Tax Incidence: Departures from the Standard Model
Introduction
Market Imperfections
Monopolistic Competition
Structure of Production
Non-Market-Clearing
Concluding Comments
Reading
Lecture 8 Taxation and Debt in a Growing Economy
Introduction
An Aggregate Model of Equilibrium Growth
Growth and Taxation
Taxation in a Life-Cycle Model
Burden of the National Debt
Concluding Comments
Reading
Lecture 9 Distributional Effect of Taxation and Public Expenditure
Taxation, Spending, and Redistribution
Modelling the Distribution of Income
Distributional Incidence
Empirical Studies of the Redistributive Impact of the Government
Budget
Concluding Comments
Reading
Lecture 10 Theories of the State and Public Economics
Introduction
Voting and Decisions
Administration and Bureaucracies
Power, Interest Groups, and Marxist Theories
Empirical Studies of Public Expenditure Reading
PART TWO THE DESIGN OF POLICY
Lecture 11 Introduction to Part Two: Normative Analysis
Introduction
Normative Theories of the State
Pareto Efficiency and Welfare Economics
Standard Public Finance Objectives
Range of Government Instruments
Note on the Measurement of Income Inequality
Reading
Lecture 12 The Structure of Indirect Taxation
Introduction
The Ramsey Tax Problem
Application of the Ramsey Results
Partial Welfare Improvements and Tax Reform
Optimal Taxation in a Many-Person Economy
Concluding Comments
Reading
Lecture 13 The Structure of Income Taxation
Introduction
A Simple Model
Linear Income Tax
General Income Tax
Concluding Comments
Reading
Lecture 14 A More General Treatment of the Optimal Tax Problem
Introduction
Indirect Taxes and Linear Direct Taxation
Nonlinear Tax Schedules and Tax Exemptions
Taxation of Savings
Externalities in Consumption and Corrective Taxes
Concluding Comments
Reading
Lecture 15 Public Sector Pricing and Production
Introduction
Departures from Marginal Cost Pricing
Choice of Technique and Production Efficiency
Cost-Benefit Analysis and Social Rate of Discount
Concluding Comments
Reading
Lecture 16 Public Goods and Publicly Provided Private Goods
Introduction
Optimum Provision of Pure Public Goods-Efficiency
Optimum Provision of Pure Public Goods-Distribution
Publicly Provided Private Goods
Equilibrium Levels of Public Expenditure
Revelation of Preferences Reading
Lecture 17 Local Public Goods
Introduction
Optimum Provision of Local Public Goods
Market Equilibria and Optimality: Identical Individuals
Market Equilibria and Optimality: Heterogeneous Individuals
Fiscal Federalism
Reading
Lecture 18 Public Economics: Theory and Policy
On the Sources of Disagreement in Policy Analysis
Thinking about Policy: Taxation
Thinking about Policy: Expenditures
Policy Reform and Political Economy
Bibliography
Author Index
Subject Index

This classic introduction to public finance remains the best advanced-level textbook on the subject ever written. First published in 1980, Lectures on Public Economics still tops reading lists at many leading universities despite the fact that the book has been out of print for years. This new edition makes it readily available again to a new generation of students and practitioners in public economics.
The lectures presented here examine the behavioral responses of households and firms to tax changes. Topics include the effects of taxation on labor supply, savings, risk-taking, the firm, debt, and economic growth. The book then delves into normative questions such as the design of tax systems, optimal taxation, public sector pricing, and public goods, including local public goods.
Written by two of the world’s preeminent economists, this edition of Lectures on Public Economics features a new introduction by Anthony Atkinson and Joseph Stiglitz that discusses the latest developments in the field and areas for future research.
The definitive advanced-level textbook on public economics
Examines the effects of taxation on households and firms
Covers tax system design, optimal taxation, public sector pricing, and more
Includes suggestions for further reading
Additional resources available online