Principles of Public Finance

Authors: Toshihiro Ihori



Equips instructors and students with an overview of the existing literature so that the latter can attain an overall understanding of macroeconomic and microeconomic public finance

Explains the standard concepts of public finance with an appendix that provides advanced topics

Is intuitively understandable without relying on complicated theories and mathematics

Can be used in a variety of courses, including those generally focused on fiscal policy, on social security reform and on tax reform

This textbook equips instructors and students with an overview of the existing literature so that the latter can attain an overall understanding of macroeconomic and microeconomic public finance. The literature on public finance has grown dramatically with theoretical studies and empirical analysis, and much of the focus has been on macroeconomic effects of public services. The standard textbook offerings, however, are mainly restricted to microeconomic topics of public finance. This text intends to fill this gap by presenting a theoretical-based, comprehensive explanation of public finance. Particular emphasis is directed at developing tools that can be applied theoretically and empirically to clarify essential economic concerns in the current public sector in advanced countries, including Japan. Such concerns include the macroeconomic effect of fiscal policy, the dependence on bonds for covering government deficits, and social security reform. The main text explains the standard concepts of public finance, and the appendix offers various advanced topics. The material will facilitate an understanding of how to investigate changes in the public sector, interpret results, and basically do research on fiscal policy. The textbook will be of value to a broad range of course offerings, including those generally focused on fiscal policy, on social security reform and on tax reform.

Table of contents

Front Matter
Pages i-xxvii

Public Finance and a Review of Basic Concepts
Pages 1-25

Macroeconomic Aspects of Public Finance
Front Matter
Pages 27-27

The Macroeconomic Theory of Fiscal Policy I
Pages 29-51

The Macroeconomic Theory of Fiscal Policy II
Pages 53-75

Public Debt
Pages 77-100

Economic Growth and Fiscal Policy
Pages 101-137

Fiscal Management
Pages 139-168

The Public Pension
Pages 169-201

Microeconomic Aspects of Public Finance
Front Matter
Pages 203-203

The Theory of Taxation
Pages 205-227

Tax Reform
Pages 229-265

Income Redistribution
Pages 267-293

The Theory of Public Goods
Pages 295-327

Public Spending and the Political Process
Pages 329-361

Local Public Finance
Pages 363-398

Back Matter
Pages 399-403