Why government succeeds and why it fails

Abstract

Acknowledgments Introduction: Public Policy-Limits and Possibilities How Economics Interacts with Politics Structure of Analysis Conceptual Apparatus: Economic Constraints What Makes Problems Soluble? 1. Macroeconomics: Can Government Control the Economy? Managing the Economy: Partisan Incentives and Political Cycles Monetary Policy and Rational Expectations Fiscal Policy-Is It Just Crowding Out? Exhortation: Persuasion and the Art of Equilibrium Selection Spending, Taxes, and Expectations: Budget Deficits as Policy Instruments Can Government Control the Economy? 2. Redistribution: A Success Story? Economic Constraints and Redistribution Uncertainty and Redistribution: Data Government Commitment to Future Redistribution Implications for Redistribution Effectiveness of Redistributive Policy Why Not Taxes? Conclusions: Redistributive Possibilities 3. When Can Government Regulate? The Scope of Regulation Regulating Firms: Possibilities and Pitfalls Regulating Consumer Behavior Conditions for Regulatory Success 4. Producing Goods and Services: Getting the Right Mix What Is Production? Crowding Out Private Provision Credibility as an Obstacle to Inducing Production Credibility as an Obstacle to Restricting Production Production Is Difficult 5. Economic Constraints and Political Institutions Divided Government and the Politics of Gridlock Federalism and the Devolution of Authority Political and Policy Reform What Do Politicians Know? Institutional Design and Policy Effectiveness 6. Final Thoughts What Can Government Do? Five Lessons Conclusions: The Burden of Government Notes References Index