Part I: Introduction: The Content and Methodology of Public Sector TheoryIntroduction to Normative Public Sector TheoryA General Equilibrium Model for Public Sector AnalysisFirst-Best and Second-Best Analysis and the Political Economy of Public Sector EconomicsPart II: The Theory of Public Expenditures and Taxation: First-Best AnalysisThe Social Welfare Function in Policy AnalysisThe Problem of Externalities: An OverviewConsumption ExternalitiesProduction ExternalitiesThe US Anti-Pollution Policies: An Application of Externality TheoryThe Theory of Decreasing Cost ProductionThe First-Best Theory of TaxationApplying First-Best Principles of Taxation: What to Tax and HowPart III: The Theory of Public Expenditures and Taxation: Second-Best AnalysisIntroduction to Second-Best AnalysisThe Second-Best Theory of Taxation in One-Consumer Economies with Linear Production TechnologyThe Second-Best Theory of Taxation with General Production Technologies and Many ConsumersTaxation under Asymmetric InformationThe Theory and Measurement of Tax IncidenceExpenditure Incidence and Economy-Wide Incidence StudiesThe Second-Best Theory of Public Expenditures--OverviewTransfer Payments and Private InformationExternalities in a Second-Best EnvironmentDecreasing Costs and the Theory of the Second Best--the Boiteux ProblemGeneral Production Rules in a Second-Best EnvironmentPart IV: Cost-Benefit AnalysisIntroduction--the Issues of Cost-Benefit AnalysisThe Rate of Discount for Public InvestmentsUncertainty and the Arrow-Lind ProblemMeasurement Problems in Cost-Benefit AnalysisCost-Benefit Analysis and the Distribution of IncomeCommon Pitfalls in Cost-Benefit AnalysisPart V: Fiscal FederalismOptimal Federalism--Sorting the Functions of Government within the Fiscal HierarchyOptimal Federalism--The Sorting of People within the Fiscal HierarchyThe Role of Grants-in-Aid in a Federalist System of Government