Public Sector Economics

Public Sector Economics

Made Simple

1st Edition - January 1, 1983

Write a review

  • Author: D. I. Trotman-Dickenson
  • eBook ISBN: 9781483140896

Purchase options

Purchase options
DRM-free (PDF)
Sales tax will be calculated at check-out

Institutional Subscription

Free Global Shipping
No minimum order

Description

Public Sector Economics: Made Simple introduces the reader, step by step, clearly and methodically, to the concepts and principles of public sector economics. The functions and finance of central government, local authorities, and nationalized industries are examined within the framework of a national economy. Examples are given largely from the British economy but international comparisons are made. A large number of tables and diagrams are also provided so as to relate the theory to the real world. Comprised of 21 chapters, this book discusses the theory and practice of public finance, with emphasis on public expenditure, taxation, and the national debt. Fiscal policy with its economic, social, and political objectives is also considered and viewed in relation to monetary policy and prices and incomes policy. After an overview of economic systems and models, the book focuses on allocation of resources and provision of public goods; public expenditure in Britain; the theory of taxation and the tax system; taxes on income, profits, consumption, and capital; and taxable capacity, incidence of taxation, and the tax burden. Fiscal policy is analyzed in relation to economic growth, standard of living, and distribution of income and wealth. This monograph is intended for economists and students taking economics-related courses.

Table of Contents


  • Foreword

    Section 1: Economie Framework

    1 Economie Systems and Models

    Political Economy

    Types of Economie System

    Economie Models

    The Sector Model of an Economy

    Input-Output Model

    Summary

    Suggested Further Reading

    Exercises

    2 National Income

    Purposes of National Income Data

    Early Estimates of National Income

    Social Accounting

    Definition and Calculation of National Income

    Income Method

    Expenditure Method

    Output Method

    Choice of Method of Calculating National Income for Developed and Developing Countries

    International Comparison of National Income

    Comparison of the Standard of Living

    Determination of National Income and the Multiplier

    Fluctuations in National Income

    Trade Cycle Theories

    Summary

    Suggested Further Reading

    Exercises

    3 Allocation of Resources and Provision of Public Goods

    Optimum Allocation

    Utilitarian Approach to Economic Welfare

    Market Allocation of Resources and Government Intervention

    Opportunity Cost

    Social Choice

    Summary

    Suggested Further Reading

    Exercises

    Section 2: Public Finance Expenditure

    4 Public Expenditure

    Public Finance

    Functions of the State

    Theories of Public Expenditure

    Observations on the Growth of Public Expenditure

    Trends in Public Expenditure, Current and Constant Prices

    Empirical Evidence on the International Growth of Public Expenditure

    Reasons for the Growth of Public Expenditure

    Restraints to the Growth of Public Expenditure

    Consequences of the Growth of Public Expenditure

    Summary

    Suggested Further Reading

    Exercises

    5 Public Expenditure in Practice: The British Experience

    Phases in the Growth of Public Expenditure

    Development of Social Services

    Education

    Health Services

    Relief of the Poor

    Establishment of the Welfare State

    Summary

    Suggested Further Reading

    Exercises

    Section 3: Public Finance, Taxation

    6 The Theory of Taxation and the Tax System

    The Need for Revenue

    Early Taxes

    Theories of Taxation

    Equality of Sacrifice

    Rates of Taxation

    Principles of Taxation

    A Tax System

    Merits and Demerits of Direct and Indirect Taxation

    Pattern of Taxation

    Revenue Maximisation, 'Laffer Curve' Analysis

    Summary

    Suggested Further Reading

    Exercises

    7 Taxes on Income

    Basis of Income Tax

    The Origin of Income Tax in the UK

    Compliance of Income Tax with the Principles of Taxation

    Income Tax and Incentives in Theory

    Income Tax and Incentives in Practice

    Supply of Labour and Taxation

    Empirical Evidence on Tax Disincentives and the Supply of Labour

    Effect of Progressive Income Tax on the Level of Personal Savings and the Pattern of Investment

    Empirical Evidence on Effects of Taxation on Savings and Investment

    Inflation and Indexation for Income Tax Purposes

    Negative Income Tax (NIT)

    Summary

    Suggested Further Reading

    Exercises

    8 Taxes on Profits

    Early Taxes on Incomes of Businesses

    Computation of Profits

    Illusory Profits, Inflation and Taxation

    Profits Tax, Differentiated Rate on Distributed and Undistributed Profits

    Corporation Tax, The New System of Computation

    The Effects of Profits Taxes

    Taxation of Excess Profits

    A New Tax on Profits from North Sea Oil

    Calculation of Petroleum Revenue Tax

    The Use of Government Revenue from North Sea Oil

    Social Security Contributions as a Form of Taxation

    The Surcharge, Departure from the Principle of Insurance

    Summary

    Suggested Further Reading

    Exercises

    9 Taxes on Consumption

    Types of Taxes

    Choice of Goods to be Taxed

    Tax Rates

    Negative Indirect Taxation—Subsidies

    Indirect Taxation in the UK

    Customs Duties: Use as Protective Measures

    Trend Away from Tariffs, GATT, EEC

    Excise Duties

    Purchase Tax

    Value Added Tax (VAT)

    Licences

    Summary

    Suggested Further Reading

    Exercises

    10 Taxes on Capital

    Definition of Capital

    Types of Taxes on Capital

    Revenue and Policy Aspects of Taxation of Capital

    Capital Transfer Tax

    Capital Gains Tax

    Wealth Tax

    Valuation and Problems of Indexation

    Effect of Inflation on Value of Assets

    Compliance of Capital Taxes with the Principles of Taxation

    Trend Away from Taxes on Capital

    Taxation of Capital in the UK

    Stamp Duties

    Summary

    Suggested Further Reading

    Exercises

    11 Reform of the Tax System, Expenditure Tax and the Meade Report

    Need for Reform

    Idea of an Expenditure Tax

    Outline of a Universal Expenditure Tax

    Problems of Introducing the New System

    Advantages of an Expenditure Tax

    Summary

    Suggested Further Reading

    Exercises

    12 Taxable Capacity, Incidence of Taxation and the Tax Burden

    Taxable Capacity Defined

    Measurement of Taxable Capacity

    Tax Burden of a Country

    Taxpayers' Burden

    Incidence of Taxation

    International Comparison of the Tax Burden

    The Hidden Cost of Taxation, Compliance and Avoidance Costs

    The 'Black Economy' and Taxation

    Summary

    Suggested Further Reading

    Exercises

    Section 4: Budgets and Borrowing: Finance of Central and Local Government and the EEC Budget

    13 Central Government Finance

    The Budget

    Types of Budget

    Preparation of the Budget: Administrative Framework

    Role of Parliament

    Audit of Public Expenditure

    Control and Management of Public Expenditure

    Cash Limits

    European Community Budget

    Summary

    Suggested Further Reading

    Exercises

    14 Public Sector Borrowing

    National Debt Defined

    Structure of the National Debt

    Acquisition of National Debt Holdings

    National Debt as an Asset and as a Liability

    Management of the National Debt

    Origin of the British National Debt

    Attempts to Repay the National Debt. The Sinking Fund

    Public Sector Borrowing Requirement (PSBR)

    Consequences and the Burden of National Debt

    The Internal and External Burden of the National Debt

    International Monetary Fund (IMF)

    International Bank for Reconstruction and Development

    Summary

    Suggested Further Reading

    Exercises

    15 Local Government Finance

    Organisation and Functions of Local Government

    Features of a Financial System

    Provision of Public Goods and Services

    Pattern and Growth of Local Authorities' Expenditure

    Reasons for Growth

    Sources of Finance

    Incidence of Rates

    Arguments in Favour and Against Rates

    Modification of the Rate System

    Charges and Fees

    Market Mechanism in the Public Sector

    Pricing Policies of Local Authorities

    Grants to Local Authorities

    New Sources of Revenue

    Local Authorities' Borrowing

    Budget and Policies

    Summary

    Suggested Further Reading

    Exercises

    Section 5: Public Sector of Industry and Public Investment

    16 Nationalised Industries and Public Sector Enterprises

    Composition of the Public Sector of Industry

    The Size of the Public Sector of Industry

    Reasons for Nationalisation

    Performance of the Nationalised Industries

    Arguments Against the Expansion of the Public Sector of Industry

    Organisation and Control of Nationalised Industries

    Parliamentary Controls

    Planning

    Financial and Economic Obligations of the Nationalised Industries

    New Investment Policies

    Pricing Policies

    Borrowing

    Public Dividend Capital

    Summary

    Suggested Further Reading

    Exercises

    17 Investment Appraisal

    Purpose of Investment Appraisal

    Procedure in the Decision-Making Process

    Pay Back Method of Investment Appraisal

    Average Rate of Return Method

    Discounted Cash Flow Technique

    Outline of Cost-Benefit Analysis

    Development of Cost-Benefit Analysis

    Problems in Valuation of External Costs and Benefits

    Limitations of Cost-Benefit Analysis

    Usefulness of Cost-Benefit Analysis

    Summary

    Suggested Further Reading

    Exercises

    Section 6: Management of the Economy

    18 Fiscal Policy to Stabilise the Economy

    Background to Fiscal Policy

    Keynesian Prescription

    Monetary Policy, Friedman's Monetarist Prescription

    Inflation and Stagflation

    Prices and Incomes Policy

    The British Experience

    Summary

    Suggested Further Reading

    Exercises

    19 Fiscal Policy in Relation to Employment

    Full Employment

    Measurement of Unemployment

    Basis for a Policy

    Frictional Unemployment

    Seasonal Unemployment

    Structural Unemployment

    Regional Unemployment

    Cyclical Unemployment

    Voluntary Unemployment

    Future Unemployment Problem

    Summary

    Suggested Further Reading

    Exercises

    20 Fiscal Policy in Relation to Economic Growth and the Standard of Living

    Measure of Economic Growth

    International Comparison

    Factors Influencing Growth

    Limits to Economic Growth

    Economic Welfare and the Standard of Living

    Elimination of Poverty

    Fiscal Policy to Increase the Standard of Living

    Summary

    Suggested Further Reading

    Exercises

    21 Fiscal Policy in Relation to Distribution of Income and Wealth

    Objective of Equality

    Causes of Inequality

    Measure of Inequality

    Lorenz Curve

    Formulation of Policy

    Problems of Inadequate Data

    Measures to Redistribute Income and Wealth

    Summary

    Suggested Further Reading

    Exercises

    Appendices

    1 Calculation of Index Numbers

    2 Calculation of a Change in the Purchasing Power of Money

    3 Calculation of Public Revenue, Public Expenditure and National Income in Real Terms

    Index

Product details

  • No. of pages: 300
  • Language: English
  • Copyright: © Made Simple 1983
  • Published: January 1, 1983
  • Imprint: Made Simple
  • eBook ISBN: 9781483140896

About the Author

D. I. Trotman-Dickenson

Ratings and Reviews

Write a review

There are currently no reviews for "Public Sector Economics"