What I call the theory of public goods has historically been developed and formulated under various names: Wicksell discussed it under the heading of “A New Principle of Just Taxation” (“Ein neues Prinzip der gerechten Besteuerung”), while Samuelson labelled his discussion “The Pure Theory of Public Expenditure”. As the subsequent discussion should amply emphasize, it is neither a theory of taxation, nor a theory of government expenditure; it is an existence theorem about public goods coupled with a market failure theorem.
KeywordsPublic Good Transaction Cost Political Party Public Expenditure Government Expenditure
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