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The Theory of Public Finance: A Study in Public Economy
1959. No Edition Remarks. 628 pages. No dust jacket. Blue cloth. Binding remains firm. Pages are lightly tanned throughout. Top corner of front free endpaper cut out. Pencil inscription to front free endpaper. Boards have light shelf-wear with corner bumping. Slight crushing to spine ends. Light wear marks overall.
Hardcover
First published December 1, 1959
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May 9, 2017
Economist Richard Musgrave's seminal book The Theory of Public Finance provides a valuable narrative that provides a theoretical foundation for the interaction of fiscal and monetary policies and the economy based primarily on the Keynesian tradition. The Classical theory of economics is also discussed sporadically throughout the book.
Musgrave provides an essential point that public wants and desires are what drive the government's budget and then taxes are determined to satisfy those public wants and desires.
The author misses the work by economist James Buchanan of public choice which argues that rent-seeking action by government officials, unions, and businesses also influence the budget allocation such that the government continues to grow to meet these demands that may not meet voter demands.
Interestingly, Musgrave separates public finance into rather self-explanatory branches: allocation, distribution, and stabilization. The former seems to be the primary role of a government such that they allocate dollars funded by the most efficient (consumption) tax system to meet voter desires. The second and third try to allocate resources to equalize incomes in some fashion or stabilize economic fluctuations.
Unfortunately, these latter two branches tend to be less efficient and effective, thereby wasting taxpayer dollars and making the allocation branch less effective. Moreover, these latter two end up being used to socially engineer society, which has many behavioral and economic costs.
Overall, I learned much from this book and recommend it to those who want a Keynesian view of public finance written in a relatively easy to read manner while learning the differences between government intervention in theory and in reality. They are not the same.
Musgrave provides an essential point that public wants and desires are what drive the government's budget and then taxes are determined to satisfy those public wants and desires.
The author misses the work by economist James Buchanan of public choice which argues that rent-seeking action by government officials, unions, and businesses also influence the budget allocation such that the government continues to grow to meet these demands that may not meet voter demands.
Interestingly, Musgrave separates public finance into rather self-explanatory branches: allocation, distribution, and stabilization. The former seems to be the primary role of a government such that they allocate dollars funded by the most efficient (consumption) tax system to meet voter desires. The second and third try to allocate resources to equalize incomes in some fashion or stabilize economic fluctuations.
Unfortunately, these latter two branches tend to be less efficient and effective, thereby wasting taxpayer dollars and making the allocation branch less effective. Moreover, these latter two end up being used to socially engineer society, which has many behavioral and economic costs.
Overall, I learned much from this book and recommend it to those who want a Keynesian view of public finance written in a relatively easy to read manner while learning the differences between government intervention in theory and in reality. They are not the same.
Displaying 1 of 1 review