A Course in Public Economics / Edition 1

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Overview

A Course in Public Economics explores the central questions of whether or not markets work, and if not, what is to be done about it. The first part of the textbook, which is designed for upper-level undergraduates and first-year graduate students, discusses the two theorems of welfare economics. These theorems show that competitive markets can give rise to socially desirable outcomes, and describe the conditions under which they do so. The second part of the book discusses the kinds of market failure - externalities, public goods, imperfect competition, and asymmetric information - that arise when these conditions are not met. The role of the government in resolving market failures is examined. The limits of government action, especially those arising from asymmetric information, are also investigated. A knowledge of intermediate microeconomics and basic calculus is assumed.
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Product Details

  • ISBN-13: 9780521535670
  • Publisher: Cambridge University Press
  • Publication date: 11/10/2003
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 432
  • Sales rank: 1,328,206
  • Product dimensions: 5.98 (w) x 8.98 (h) x 0.87 (d)

Table of Contents

List of Figures
Preface
1 Introduction 1
2 The Exchange Economy 17
3 An Algebraic Exchange Economy 41
4 The Production Economy 57
5 Consumer and Producer Surplus 80
6 Externalities and Negotiation 103
7 Permit Trading 113
8 Renewable Common Property Resources 123
9 Co-ordination Failures 144
10 Pure Public Goods 157
11 Two Examples of Pure Public Goods 171
12 Impure Public Goods 187
13 The Link between Public Goods and Externalities 200
14 Monopoly 219
15 Pricing Rules under Imperfect Competition 228
16 Taxation 241
17 The Welfare Cost of Tax Interactions 256
18 The Theory of the Second Best 272
19 Asymmetric Information 293
20 Preference Revelation 304
21 Regulation of a Natural Monopoly 317
22 Other Examples of Asymmetric Information 333
23 The Distribution of Income 349
24 The Limits to Income Redistribution 368
25 Redistributing Income through Tagging and Targeting 380
26 The Role of Government in a Market Economy 390
A Note on Maximization 395
Reference 405
Index 409
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