Includes bibliographical references and index.

1. Why study state and local government finance? -- 2. Microeconomic analysis : market efficiency and market failure -- 3. Demand for state and local goods and services -- 4. Public choice through mobility: voting -- 5. Public choice through mobility -- 6. Organization of subnational government -- 7. Budgeting and fiscal outcomes -- 8. Cost and production of state and local goods and services -- 9. Pricing of government goods-user charges -- 10. Intergovernmental grants -- 11. Borrowing and debt and capital investment -- 12. Principles of tax analysis -- 13. The property tax : institutions and structure -- 14. Property tax : economic analysis and effects -- 15. Sales and excise taxes -- 16. Income taxes -- 17. Business taxes -- 18. Revenue from government monopoly and regulation -- 19. Education -- 20. Transportation -- 21. Health and welfare -- 22. Economic development

This undergraduate textbook analyzes the economic theory behind the goods and services provided by local and state governments, and applies the concepts to education, transportation, health and welfare, and economic development policies.