PUBLIC FINANCE II

Focuses on the effect of public-sector decisions on resource allocation. The first section examines the nature of public goods and income, expenditure, wealth-based taxes, and benefit cost analysis as tools in supplying public services. Includes a brief treatment of capital budgeting. Secondly, economic explanations of political decision making are discussed, including the behavior of voters, members of the political parties, elected representatives, and bureaucrats. The final selection examines the three principal forms of taxation.