PUBLIC FINANCE AND PUBLIC CHOICE

James M. Buchanan

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Economic and Fiscal Studies Local Government Finance and Decentralization Politics, Economics, and Education Policy

Abstract

Public finance has undergone major transformation since World War II. This paper surveys this transformation, particularly from a public-choice perspective. Post-Marshallian public finance had two major gaps: the expenditure side of the fiscal account, and the public decision making process. Both of these gaps have been partially filled, although much discussion of policy continues to take place in a now囎outmoded setting. Social security financing is used as an illustration of the separate methodologies.

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