The Speed of Adjustment

  • Richard Musgrave
Part of the Research Monographs in Japan-U.S. Business & Economics book series (JUSB, volume 5)


Four decades have passed since our celebrant, then a young student at Johns Hopkins, attended my class in Public Finance. He was told that the fiscal system must address three concerns—the provision of public goods, equity in distribution and macro stability. The three branches of the budget, as I called them, should each meet their task while respecting the concerns of the others, so as to form a consistent policy (Musgrave, 1959). How much of this is still valid, and what needs to be corrected, whether because of advances in analysis, of shifting values or of changing events?


Public Good Monetary Policy Fiscal Policy Distributive Justice Median Voter 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Atkinson, A.B. (1983), Social Justice and Social Policy, Brighton, England: Wheatsheaf Books.Google Scholar
  2. Bentham, J. (1802), Principles of the Civil Code, in J. Browning, ed. (1931), The Works of Jeremy Bentham, vol. 1, New York: Clarendon.Google Scholar
  3. Buchanan, J. and Tullock, G. (1962), The Calculus of Consent, Ann Arbor: University of Michigan Press.Google Scholar
  4. Buchanan, J. and Tullock, G. (1965), “A Theory of Clubs”, Economica, February, 965.Google Scholar
  5. Robbins, L. (1935), Nature and Significance of Economic Science, London: MacMillan.Google Scholar
  6. Müller, D. (1989), Public Choice II, Cambridge: Cambridge University Press, p. 375.Google Scholar
  7. Musgrave, R.A. (1959), The Theory of Public Finance, New York: McGraw-Hill.Google Scholar
  8. Musgrave, R.A. (1990), “Horizontal Equity, Once More”, National Tax Journal, 43.Google Scholar
  9. Samuelson, P. (1955), “The Pure Theory of Public Expenditures”, Review of Economics and Statistics, November. pp. 387–389.Google Scholar
  10. Sato, R. (1963), “Fiscal Policy in a Neoclassical Growth Model: An Analysis of Time Required for Equilibrating Adjustment”, Review of Economic Studies, •• (1), February, (16–23).Google Scholar
  11. Sato, R. (1998), Growth Theory and Technical Change, Cheltenham: Elgar, p. 8.Google Scholar
  12. Simons, H. (1950), Federal Tax Reform, Chicago: Chicago University Press.Google Scholar
  13. Simons, H. (1938), Personal Income Taxation, Chicago: Chicago University Press.Google Scholar
  14. Tiebout, C. (1956), “A Pure Theory of Local Expenditures”, Journal of Political Economy, October.Google Scholar
  15. Wicksell, K. (1886), Finanztheoretische Untersuchungen nebst Darstellung des Steuerwesen Schwedens. Translation in R.A. Musgrave and A. Peacock (eds.) (1958), Readings in he Classics of Public Finance, London: Macmillan.Google Scholar

Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Richard Musgrave

There are no affiliations available

Personalised recommendations