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Public Finance Definitions

AB
Negative ExternalityMSC > MSB
Public GoodCollective and Nonrivalous
Positive ExternalityMSB > MSC
Merit GoodCommodity Equalitarianism
Coase TheoremZero Transaction Costs
Wagner's LawPublic Sector Increasing as a Proportion of GDP
Pareto OptimumMSB = MSC
Normative EconomicsValue Judgments
Positive EconomicsScientific Approach
Spending CapsBBA of 1997
Efficiency CriterionJudging the Use of Resources
Net Marginal BenefitsMSB minus MSC
Displacement EffectTax and Debt Tolerance
Free RiderDoesn't Express True Preference
Opportunity Cost of Public GoodsSacrifice of Private Goods
Redistribution of IncomeEquity / Efficiency Tradfe-off
Personal Income TaxLargest Source of Federal Revenue
Sales TaxLargest Source of State Revenue
EducationLargest Expenditure of State and Local Governments
Social SecurityLargest Federal Expenditure


Duane B. Graddy

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