From Market Failure to Government Failure

The present book is especially designed for students of public administration studying public sector economics. The book can be used profitably without having any background in economics and mathematics. Although the discussion in every chapter is brief and pointed, it does not miss any fact or facet of importance. Every chapter is provided with a list of selected references, which can be consulted in case students are interested in further details.

Contents: 1. Market failure: 1.1 Market and efficiency, 1.2 Market failure, 1.3 Public goods, 1.4 Externalities. 2. Why is Government necessary? 2.1 Economic rationale for the Government, 2.2 Poverty, 2.3 Income Distribution and Inequality, 2.4 Social Security System, 2.5 Distributive justice, 2.6 Economic theory of bureaucracy, 2.7 Theory of public choice. 3. Government income and expenditure: 3.1 Fiscal policy, 3.2 Budget, 3.3 Taxation, 3.4 Public expenditure, 3.5 Tax policy and development, 3.6 Public debt. Appendix one: Notes on individual taxes. 4. Government regulation and control: 4.1 The theory of regulation and control, 4.2 Environmental pollution, 4.3 Federal issue, 4.4 Control of social reproduction and utilities, 4.5 Price policy, 4.6 Industrial policy. 5. Government failure: 5.1 why does Government fail? 5.2 The problem of Rent-seeking, 5.3 X-Inefficiency: Quasi-market reforms, 5.4 Privatisation, 5.5 Cost-benefit analysis, 5.6 State reforms: Institutional Governance, structural adjustment programmes. Appendix two: Privatisation in the ASEAN Countries, Appendix three: Cost-benefit analysis: A practical guide