The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Public Finance

  • Richard A. Musgrave
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1643

Abstract

Public finance may well be the oldest branch of economics. It concerns not only the effects of fiscal operations on the market but also principles of public sector economics, which address a distinct set of issues and are linked closely to the perspectives of political and social science. This article covers (a) expenditure on public goods and transfers, including its macroeconomic effects as analysed by the classical and the Keynesian schools, and (b) taxation, including issues of tax equity and tax efficiency, definitions of income, consumption and expenditure, and tax shifting and incidence.

Keywords

Ability to pay tax Ad valorem taxation Aggregate demand Bentham, J. Bequests Budgetary policy Capital budgeting Capital gains taxation Capital measurement Consumption base Consumption taxation Cost–benefit analysis Cournot, A. Deadweight loss Depreciation Edgeworth, F. Y. Elasticity of substitution Entitlement Equal absolute sacrifice theory of tax equity Equal marginal sacrifice theory of tax equity Equal proportional sacrifice theory of tax equity Equality Excess burden of taxation Exchange Expenditure base Expenditure tax Externalities Factor mobility Factor pricing Fairness Fiscal location Free rider problem Hobbes, T. Horizontal and vertical equity Human capital Hume, D. Income base Income effect of taxation Income subsidies Inflation Intergenerational equity International capital flows Interpersonal utility comparisons Interpersonal utility interdependence Justice Keynesianism Land tax Leisure Lindahl, E. R. Local public finance Marginal rates of substitution Marginal utility of income schedules Market failure Merit goods Mill, J. S. Musgrave, R. A. Neoclassical growth models Neoclassical synthesis Net income Opportunity cost Optimal commodity taxation Optimal taxation Paternalism Payroll tax Physiocracy Pigou, A. C. Preference revelation Primary distribution Progressive and regressive taxation Propensity to save Property tax Public choice Public expenditure Public finance Public goods Public policy failure Quasi-rent Rawls, J. Rent Retail sales tax Ricardo, D. Samuelson, P. A. Scandinavian model Shadow pricing Smith, A. Social discount rate Social welfare function Subsistence hypothesis Substitution effect of taxation Tax avoidance Tax base definition Tax burden Tax efficiency Tax equity Tax expenditures Tax incidence Tax prices Tax shifting Taxation of corporate profits Taxation of income Tiebout hypothesis Transfers Utilitarianism Value-added tax Voting rules Wagner’s law Wicksell, K. 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Richard A. Musgrave
    • 1
  1. 1.