Public Finance and Public Policy

by Jonathan Gruber, The Economist, Financial Times

When first published, Gruber's Public Finance and Public Policy brought a refreshingly contemporary approach. It was the first text written from the ground up to reflect current realities of public finance, enhancing its survey of traditional topics with an emphasis on empirical work and coverage of transfer programs and social insurance. The new edition, fully updated with the most recent data and research possible, includes new coverage of the Medicare drug benefit, changes in the tax code, Hurricane Katrina, and the ongoing debate over privatization.

Genres: Economics, Textbooks, Public Policy, Politics, Finance, Nonfiction, Reference

700 pages, Hardcover

First published December 21, 2004

Reviews

[John Turlockton · Rating 1 out of 5]

I had to stop at the chapter on Welfare. He makes only very fleeting references to societal well-being and does not concentrate enough on evidence. It's also excruciatingly boring to read. The welfare was the most egregious part although the section on labour supply of single mothers was also terrible. In the welfare chapter, he just makes a huge number of assumptions (such as the iron triangle section) and makes a lot of conclusions based on those assumptions, for which he provides no evidence. He does sometimes look at evidence but there are far too many sections where it's all theory based on assumptions which at least in some cases, I know of evidence contradicting them.

For example, he never once considers or looks at evidence for whether people actually do drop out of the labour supply if given welfare payments. Experiments in Canada and the US in the 70s and 80s found that there was a minimal effect on labour supply from a generous welfare program. He also ignores how people could drop of our the labour supply temporarily in order to improve their prospects for a job later. Nor does he ever give consideration to effects of welfare programs on people's well-being or health, including mental health. Nor does he ever compare US welfare programs with other countries. The section on 'ordeal mechanisms' is what made me stop reading. He basically advocates treating people like shit in order to weed out people who are supposedly 'high ability but just lazy', ignoring of course whether people actually need the welfare in order to survive or maintain a basic level of survival, and whether these humiliating tests dissuade people from getting help they need. Indeed, the lowest ability people would also be those least able to get through these ordeals he proposes.

Which of course brings onto the other point that public policy is in large part about moral choices that politicians make, the book should have talked about this more. Scientific evidence can answer certain empirical questions but if a politician believes the poor are inferior and should be punished, then it is irrelevant to them the fact that welfare programs have minimal impact on labour supply. His section on Health Care reform reads more like an advocacy platform than a textbook, which is supposed to be neutral and science-based.

The author also gives too much time to Health and Social Insurance, I understand these are important topics but a quarter of the book is unnecessary. And yet he doesn't mention happiness, well-being, climate change, immigration and just fleetingly mentions inequality. These are all the biggest topics in public policy and have been for a long time, yet he effectively ignores them. Neither does he give comparisons with other countries, which would be especially helpful in topics where other countries do a better job like healthcare or welfare.

[Mahika]

read this pretty much cover to cover and studied for this exam like i have for no other and therefore we are logging this

[Roland Martinez · Rating 4 out of 5]

It was good, copyright is 2011 even though it was first printed in 2010 so it's hot off the press and relevant.

[Jennifer · Rating 4 out of 5]

I really enjoyed this book and the class that accompanied it. The textbook is set up really well to facilitate studying.

[John · Rating 4 out of 5]

A text book I was forced to pay 120$ for, absolutely worth it. This text book is fascinating enough to be read for fun.

Merged review:

A text book I was forced to pay 120$ for, absolutely worth it. This text book is fascinating enough to be read for fun.

[Jess · Rating 4 out of 5]

So not my cup of tea, but if you've ever pondered the functions of the social security system or the rationale behind corporate taxation debates... this is your book.

[Darkkhan]

seegeg

[Michael · Rating 5 out of 5]

One of my favorite texts as a college undergrad.

[Lauren · Rating 2 out of 5]

This one was OK. I don't have too much to say, but my opinion is neutral.