The level and composition of public expenditures and revenues both have implications for economic development, as shown by the 'fiscal multiplier' and the 'quality of public finance' literature. Public finance decisions also influence the distribution of income. Based on a review of the...

"Many of the most pernicious economic institutions and policies create entry barriers or manipulate factor prices to transfer resources from entrepreneurs and workers to groups that hold political power. These inefficiencies partly result from the fact that direct and efficient fiscal...