Readings, Issues, and Problems in Public Finance

Although Stiglitz makes it extremely readable and more elegant in his Economics of the Public Sector, I found it more effective to learn the subject due to the deeper treatment of the models and theories.

Perhaps slightly lacking on the theoretical side (but I guess this was Prof Rosen's objective), this book offers a broad yet detailed overview of public economics. Many parts are in narrative style making for a pleasantly clear read.Certainly a good and clear text for an exposition on the topic, especially if complemented/expanded on by a good lecturer.

This book is not as challenging as Stiglitz, and the author does not have Stiglitz's dazzling facility with economic theory. But Rosen is properly less trusting of the political process, gives greater scope to political and ethical philosophy, is open to a wider range of ideas and has more references than Stiglitz, is less prone to rush to judgement, and is less beholden to the Clintonista viewpoint. This is the better book upon which to ground a sound understanding of public economics. Compare Rosen with Stiglitz on the Coase Theorem, the Flat Tax, the economic role of the stock market, and Social Security reform. Too bad Rosen's fairness cannot be combined with Stiglitz's brilliance.