Economics of the Public Sector provides a comprehensive exploration into the government’s role in economic life. Joseph E. Stiglitz introduces key questions and institutional details, while presenting a clear review of the microeconomic foundations that underpin public sector activity. Building on this framework, the book offers a thorough analysis of public expenditures, detailing its principles and examining its application across several areas of governmental spending in the United States. Stiglitz then turns his attention to the theories of taxation, providing insightful analysis into the design and impact of tax systems. In addition, the work examines critical issues related to state and local taxation and expenditure, expanding the discussion to include fiscal federalism. The text concludes by delving into the relationship between microeconomic insights and macroeconomic performance, particularly in the context of stabilization and growth.
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