This comprehensive, accessible introduction to public finance (the economics of the government sector) in the United States utilizes microeconomic theory and methods to illuminate the often confusing area of public policy. The author uses the economic theory of the household, firm, and market to understand the impacts of government spending, distribution and taxation policies, and the concepts of efficiency and equity to evaluate their relative worth. The second edition is current with the latest data and with various policy issues and debates in the headlines today.