PART I Introduction and Background--Why Study Public Finance?--Theoretical Tools of Public Finance Appendix: The Mathematics of Utility Maximization--Empirical Tools of Public Finance Appendix: Cross-Sectional Regression Analysis-- Tools of Budget Analysis--PART II Externalities and Public Goods-- Externalities: Problems and Solutions-- Externalities in Action: Environmental and Health Externalities Public Goods-- Appendix: The Mathematics of Public Goods Provision --Cost-Benefit Analysis-- Political Economy --State and Local Government Expenditures --Education --PART III Social Insurance and Redistribution --Social Insurance: The New Function of Government-- Appendix: Mathematical Models of Expected Utility --Social Security --Unemployment Insurance, Disability Insurance, and Workers’ Compensation Appendix: Advanced Quasi-Experimental Analysis-- Health Insurance I: Health Economics and Private Health Insurance --Health Insurance II: Medicare, Medicaid, and Health Care Reform-- Income Distribution and Welfare Programs --PART IV Taxation in Theory and Practice-- Taxation in the United States and Around the World --The Equity Implications of Taxation: Tax Incidence-- Appendix: The Mathematics of Tax Incidence Tax Inefficiencies and Their Implications for Optimal Taxation-- Appendix: The Mathematics of Optimal Taxation-- Taxes on Labor Supply-- Taxes on Savings --Taxes on Risk Taking and Wealth --Corporate Taxation --Fundamental Tax Reform Glossary--Name Index--References --Subject Index