Includes bibliographical references and indexes.

Introduction -- Tools of positive analysis -- Tools of normative analysis -- Public goods -- Externalities -- Political economy
Education -- Cost-benefit analysis -- The Health care market -- Government and the market for health care -- Social security -- Income redistribution: conceptual issues -- Expenditure programs for the poor -- Taxation and income distribution -- Taxation and efficiency -- Efficient and equitable taxation -- The personal income tax -- Personal taxation and behavior -- Deficit finance -- Fundamental tax reform: taxes on consumption and wealth -- Public finance in a federal system .

Incorporating developments, this title provides students with a view of the role of government spending and taxation. It emphasizes the links between economics and the analysis of real-world policy problems .