The Failure of Public Finance
28 Pages Posted: 10 Jul 2011
Date Written: 1999
A number of explanations are commonly presented in public finance texts as reasons why government intervention in the economy will improve performance. This paper questions the validity of each of them. The paper examines the merit goods argument, equity considerations, growth and development and stabilization and finds the arguments offered in their behalf to be unpersuasive. Public finance as presented in textbooks is seen as relying on rather dubious normative arguments.
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