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Answer questions 1, 5, 6, 7 on pages 260-261 of the Economics of the Public Sector text.ECONOMICS OF THE PUBLIC SECTOR

FOURTH EDITION

ECONOMICS
OF THE
PUBLIC SECTOR

FOURTH EDITION

JOSEPH E. STIGLITZ | JAY K. ROSENGARD

n
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Library of Congress Cataloging-in-Publication Data.

Stiglitz, Joseph E.
Economics of the public sector / Joseph E. Stiglitz, Jay K. Rosengard.—Fourth edition.
pages cm
Includes bibliographical references and index.
ISBN 978-0-393-92522-7 (pbk.)
1. Finance, Public—United States. 2. Fiscal policy—United States. I. Rosengard, Jay K. II. Title.
HJ257.2.S84 2015
336.73—dc23 2014048383

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1 2 3 4 5 6 7 8 9 0

To our f irst teachers,
Nat and Charlotte
Jordan and Betty

vii

BRIEF CONTENTS

Preface xxvii

PART 1 ROLE AND SIZE OF THE
PUBLIC SECTOR 1

1 DEFINING PUBLIC SECTOR
RESPONSIBILITIES 3

2 MEASURING PUBLIC SECTOR SIZE 26

PART 2 FUNDAMENTALS OF WELFARE
ECONOMICS 59

3 MARKET EFFICIENCY 61

4 MARKET FAILURE 81

5 PUBLIC GOODS AND PUBLICLY PROVIDED
PRIVATE GOODS 101

6 EXTERNALITIES AND THE ENVIRONMENT 129

7 EFFICIENCY AND EQUITY 163

PART 3 PUBLIC EXPENDITURE THEORY 197

8 PUBLIC PRODUCTION OF GOODS
AND SERVICES 199

9 PUBLIC CHOICE 230

viii BRIEF CONTENTS

PART 4 PUBLIC EXPENDITURE IN PRACTICE 267

10 FRAMEWORK FOR ANALYSIS OF
EXPENDITURE POLICY 269

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