Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-28T08:49:08.215Z Has data issue: false hasContentIssue false
  • English
  • Français

Fifty Years after Samuelson's “The Pure Theory of Public Expenditure”: What are we Left With?

Published online by Cambridge University Press:  11 June 2009

Michael Pickhardt
Michael Pickhardt
Affiliation:
Chemnitz University of Technology, Department of Economics, Reichenhainer Str. 39, D-09107 Chemnitz, Germany.
Get access Rights & Permissions [Opens in a new window]

Extract

In 1954, Paul A. Samuelson presented on just two and a half pages what he claimed to be “a pure theory of government expenditure on collective consumption goods” (1954c, p. 388). Just a year later, he supplemented this theory by an equivalent diagrammatic formulation and a few clarifying comments (Samuelson 1955). Although his initial paper was strongly criticized on various grounds, an industry was launched and public goods—or, as referred to initially by Samuelson, collective consumption goods—now play a crucial role in a number of theories like fiscal competition or endogenous growth, and in almost all textbooks on public economics or microeconomics at least a paragraph is devoted to public goods. In fact, Samuelson's 1954 paper is conventionally considered the foundation of the modern theory of public goods (for example, see Richard A. Musgrave 1983a, p. 141). However, the many contributions to the modern theory of public goods, including Samuelson's subsequent writings, have revealed that there is widespread disagreement both on fundamental aspects of the theory as well as on its significance for the determination of government expenditure.

Type
Research Article
Information
Journal of the History of Economic Thought , Volume 28 , Issue 4 , December 2006 , pp. 439 - 460
Copyright
Copyright © The History of Economics Society 2006

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Barone, E. (1908) II ministerio delia produzione nello stato colletivista, Giornale degli Economiste, pp. 267–93, 391–414. Translated as: The Ministry of Production in the Collectivist State, F. A. von Hayek (Trans), in: F. A. Hayek, (Ed) Collectivist Economic Planning (London: Routledge, 1935), pp. 245–90.Google Scholar
Barone, E. (1912) “Preface” to Studi di economia finanziaria. Translated as: On Public Needs, Eros, J. (Trans), in: Musgrave, R. A. and Peacock, A. T. (Eds) Classics in the Theory of Public Finance, (London: Macmillan, 1958), pp. 165–67.Google Scholar
Begg, D., Fischer, S., and Dornbusch, R. (2000) Economics, 6th edition (London: McGraw/Hill).Google Scholar
Blümel, W., Pethig, R., and von dem Hagen, O. (1986) The Theory of Public Goods: A Survey of Recent Issues, Journal of Institutional and Theoretical Economics, 142 (2), pp. 241–309.Google Scholar
Bowen, H. R. (1943) The Interpretation Of Voting In The Allocation Of Economic Resources, Quarterly Journal of Economics, 58 (1), pp. 27–48.CrossRefGoogle Scholar
Bowen, H. R. (1948) Toward Social Economy (New York: Rinehart).Google Scholar
Brown, C. V. and Jackson, P. M. (1978) Public Sector Economics (Oxford: Martin Robertson).Google Scholar
Buchanan, J. M. (1968) The Demand and Supply of Public Goods (Chicago: Rand McNally).Google Scholar
Buchanan, J. M. and Musgrave, R. A. (Eds) (1999) Public Finance and Public Choice (Cambridge, MA: MIT Press).CrossRefGoogle Scholar
Colm, G. (1936) The Theory of Public Expenditure, Annals of the American Academy of Political and Social Sciences 183: 1–11. Reprinted in: G. Colm (Ed) Essays in Public Finance and Fiscal Policy (New York: Oxford University Press, 1955), pp. 27–43.Google Scholar
Colm, G. (1956) Comments on Samuelson's Theory of Public Finance, Review of Economics and Statistics, 38 (4), pp. 408–12.Google Scholar
Colm, G. (1965) National Goals Analysis and Marginal Utility Economics, FinanzArchiv, 24 (3), pp. 209–24.Google Scholar
Colombier, C. and Pickhardt, M. (2005) A Note on Public Input Specifications, International Advances in Economie Research, 11 (1), pp. 13–18.CrossRefGoogle Scholar
Cornes, R. and Sandler, T. (1996) The Theory of Externalities, Public Goods and Club Goods (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
Debreu, G. (1987) Mathematical Economics in: Eatwell, J., Milgate, M., and Newman, P. (Eds) The New Palgrave: A Dictionary of Economics, Vol. 3 (London: Macmillan).Google Scholar
De Viti De Marco, A. (1888) Il carattere teòrico dell' economia finanziaria (Roma: Pasqualucci).Google Scholar
Dupuit, J. (1844) De la Mesure de l'Utilité des Travaux Publics, Annales des Ponts et Chaussées, 2nd séries, 8. Translated by R. H. Barback as: On the Measurement of the Utility of Public Works, International Economic Papers, 2 (1952): pp. 83–110. Reprinted in: K. J. Arrow and T. Scitovsky (Eds) Readings in Welfare Economics (Homewood IL: Irwin, 1969), pp. 255–83.Google Scholar
Enke, S. (1955) More on the Misuse of Mathematics in Economics: A Rejoinder, Review of Economics and Statistics, 37 (2), pp. 131–33.CrossRefGoogle Scholar
Fusfeld, D. R. (1987) Methodenstreit, in: Eatwell, J., Milgate, M., and Newman, P. (Eds) The New Palgrave: A Dictionary of Economics, Vol. 3 (London, Macmillan), pp. 454–55.Google Scholar
Graziani, A. (1897) Istituzioni di Scienza delle Finanze (Torino: Bocea).Google Scholar
Hagemann, H. (2002) Zur Emigration deutschsprachiger Finanzwissenschaftler nach 1933, in: Barens, I. and Pickhardt, M. (Eds) Die Rolle des Staates in der Ökonomie: Finanzwissenschaftliche Perspektiven, Festschrift für Otto Roloff (Marburg, Germany: Metropolis), pp. 85–116.Google Scholar
Lindahl, E. (1919) Die Gerechtigkeit der Besteuerung. Eine Analyse der Steuerprinzipien auf Grundlage der Grenznutzentheorie. Translated as: Just Taxation: A Positive Solution, E. Henderson (Trans), in: R. A. Musgrave and A. T. Peacock (Eds) Classics in the Theory of Public Finance (London: Macmillan, 1958), pp. 68–176.Google Scholar
Machlup, F. (1952) Issues in Methodology: Discussion, American Economic Review, Papers and Proceedings, 42 (2), pp. 69–73.Google Scholar
Malkin, J. and Wildavsky, A. (1991) Why The Traditional Distinction Between Public And Private Goods Should Be Abandoned, Journal of Theoretical Politics, 3 (4), pp. 355–78.CrossRefGoogle Scholar
Margolis, J. (1955) A Comment on the Pure Theory of Public Expenditure, The Review of Economics and Statistics, 37 (4), pp. 347–49.CrossRefGoogle Scholar
Mazzola, U. (1890) I dati scientifici della finanza pubblica, Chapter IX, pp. 159–83, Translated as: The Formation of the Prices of Public Goods, Henderson, E. (Trans), in: Musgrave, R. A. and Peacock, A. T. (Eds) Classics in the Theory of Public Finance (London: Macmillan 1958), pp. 37–47.Google Scholar
Medema, S. G. (2005) “Marginalizing Goverment”. From La Scienza delte Finaanze to Wicksell, History of Political Economy, 37 (spring) pp. 1–25.Google Scholar
Mongiovi, G. (1988) The American Methodenstreit, Bulletin of the History of Economics Society, 10 (1), pp. 57–65.CrossRefGoogle Scholar
Musgrave, R. A. and Musgrave, P. (2003) Prologue, in: Kaul, I., Conceicao, P., Le Goulve, K., Mendoza, R. U. (Eds) Providing Global Public Goods: Managing Globalization (New York: Oxford University Press), pp. xii–xv.Google Scholar
Musgrave, R. A. (1939) The Voluntary Exchange Theory of Public Economy, Quarterly Journal of Economics, 53 (2), pp. 213–37.CrossRefGoogle Scholar
Musgrave, R. A. (1959) The Theory of Public Finance (New York: McGraw/Hill).Google Scholar
Musgrave, R. A. (1969) Provision for Social Goods, in: Margolis, J. and Guitton, H. (Eds) Public Economics (London: Macmillan), pp. 124–44.CrossRefGoogle Scholar
Musgrave, R. A. (1983a) Public Goods, in: Brown, E. C. and Solow, R. M. (Eds) Paul Samuelson and Modern Economic Theory (New York: McGraw/Hill), pp. 141–56.Google Scholar
Musgrave, R. A. (1983b) Public Finance, Now and then, FinanzArchiv, 41 (1), pp. 1–13.Google Scholar
Musgrave, R. A. (1986) Public Finance in a Democratic Society, Vol. I, (Brighton: Harvester Press).Google Scholar
Musgrave, R. A. (1996) Public Finance and Finanzwissenschaft Traditions Compared, FinanzArchiv, 53 (2), pp. 145–93.Google Scholar
Musgrave, R. A. (1999) The Nature of the Fiscal State: The Roots of My Thinking, in: Buchanan, J. M. and Musgrave, R. A. (Eds) Public Finance and Public Choice (Cambridge, MA: MIT Press), pp. 29–49.Google Scholar
Myles, G. D. (1995) Public Economics (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
Novick, D. (1954) Mathematics: Logic, Quantity, and Method, Review of Economics and Statistics, 36 (4), pp. 357–58.CrossRefGoogle Scholar
Pantaleoni, M. (1883) Contributo alla teoria del riparto delle spese pubbliche, Rassegna Italiana. Translated as: Contribution to the Theory of the Distribution of Public Finance. Bevan, D. (Trans), in: Musgrave, R. A. and Peacock, A. T. (Eds) Classics in the Theory of Public Finance (London: Macmillan, 1958), pp. 16–27.Google Scholar
Pickhardt, M. (2005a) Some Remarks on Self-interest, the Historical Schools and the Evolution of the Theory of Public Goods, Journal of Economic Studies, 32 (3), pp. 275–93.CrossRefGoogle Scholar
Pickhardt, M. (2005b) Club Goods and the Dichotomy of Public versus Private Goods, Paper presented at the 7th INFER Annual Conference, London, October 7–9, 2005.Google Scholar
Rosen, H. S. (1988) Public Finance, 2nd edition (Homewood, Il: Irwin).Google Scholar
Samuelson, P. A. (1947) The Foundations of Economic Analysis (Cambridge, MA: Harvard University Press).Google Scholar
Samuelson, P. A. (1952) Economic Theory and Mathematics: An Appraisal, American Economic Review, Papers and Proceedings, 42 (05), pp. 56–66.Google Scholar
Samuelson, P. A. (1954a) Introduction: Mathematics in Economics: No, No or Yes, Yes, Yes?” Review of Economics and Statistics, 36 (4), p. 359.CrossRefGoogle Scholar
Samuelson, P. A. (1954b) Some Psychological Aspects of Mathematics and Economics, Review of Economics and Statistics, 36 (4), pp. 380–82.CrossRefGoogle Scholar
Samuelson, P. A. (1954c) The Pure Theory of Public Expenditure, Review of Economics and Statistics, 36 (4), pp. 387–89.CrossRefGoogle Scholar
Samuelson, P. A. (1955) Diagrammatic Exposition of a Theory of Public Expenditure, Review of Economics and Statistics, 37 (4), pp. 350–56.CrossRefGoogle Scholar
Samuelson, P. A. (1958) Aspects of Public Expenditure Theories, Review of Economics and Statistics, 40 (4), pp. 332–38.CrossRefGoogle Scholar
Samuelson, P. A. (1964) Public Goods and Subscription TV: Correction of the Record, The Journal of Law and Economics, 7 (10), pp. 81–83.CrossRefGoogle Scholar
Samuelson, P. A. (1967a) Pitfalls in the Analysis of Public Goods, The Journal of Law and Economics, 10 (01), pp. 199–204.CrossRefGoogle Scholar
Samuelson, P. A. (1967b) Indeterminacy of Government Role in Public-Good Theory, in: Merton, R. C. (Ed) The Collected Scientific Papers of Paul A. Samuelson, Vol. III, (Cambridge, MS: MIT Press).Google Scholar
Samuelson, P. A. (1969a) Contrast Between Welfare Conditions for Joint Supply and for Public Goods, Review of Economics and Statistics, 51 (1), pp. 26–30.CrossRefGoogle Scholar
Samuelson, P. A. (1969b) Pure Theory of Public Expenditure and Taxation, in: Margolis, J. and Guitton, H. (Eds) Public Economics (London: Macmillan), pp. 98–123.CrossRefGoogle Scholar
Samuelson, P. A. (1981) Bergsonian Welfare Economics, in: Rosefielde, S. (Ed) Economic Welfare and the Economies of Soviet Socialism: Essays in Honor of Abram Bergson (Cambridge: Cambridge University Press), pp. 223–66.CrossRefGoogle Scholar
Samuelson, P. A. (1982) A Chapter in the History of Ramsey's Optimal Feasible Taxation and Optimal Public Utility Prices, in: Andersen, S., Larsen, K., Rusmussen, P. N., and Vibe-Pedersen, J. (Eds) Economic Essays in Honour of Jörgen H. Gelting (Copenhagen: Danish Economic Association), pp. 157–81.Google Scholar
Samuelson, P. A. (1998) How Foundations Came To Be, Journal of Economic Literature, 36 (09), pp. 1375–86.Google Scholar
Samuelson, P. A. (2002) Tribute to a Great Scholar at Four-Score and Ten, CESifo Special, 100 Years: Speeches on the Occasion of Richard Musgrave's 90th and CES's 10th Birthdays (Munich: CESifo), pp. 7–8.Google Scholar
Sax, E. (1924) Die Wertungstheorie der Steuer, Zeitschrift für Volkswirtschaft und Socialpolitik 4, 1924. Reprinted in: Zeitschrift für Nationalökonomie XV, 1956, pp. 317–56. Translated as: The Valuation Theory of Taxation E. Henderson (Trans), in: R. A. Musgrave and A. T. Peacock (Eds) Classics in the Theory of Public Finance (London: Macmillan, 1958), pp. 177–89.Google Scholar
Sax, E. (1887) Grundlegung der Theoretischen Staatswirthschaft (Wien: Alfred Hölder).Google Scholar
Shmanske, S. (1991) Public Goods, Mixed Goods, and Monopolistic Competition (College Station, TX: Texas A&M).Google Scholar
Silvestre, J. (2003) Wicksell, Lindahl and the Theory of Public Goods, Scandinavian Journal of Economics, 105 (4), pp. 527–53.CrossRefGoogle Scholar
Wicksell, K. (1896) Finanztheoretische Untersuchungen nebst Darstellung und Kritik des Steuerwesens Schwedens (Jena, Germany: Gustav Fischer).Google Scholar
Wicksell, K. (1896) Ein neues Prinzp der gerechten Besteuerung, in: Knut Wicksell, Finanztheoretische Untersuchungen nebst Darstellung und Kritik des Steuerwesens Schwedens, Jena. Translated as: A New Principle of Just Taxation J. M. Buchanan (Trans), in: Musgrave, R. A. and Peacock, A. T. (Eds) Classics in the Theory of Public Finance (London: Macmillan, 1958), pp. 72–118.Google Scholar
Winer, St. L. and Shibata, H. (Eds) (2002) Political Economy and Public Finance (Cheltenham: Edward Elgar).CrossRefGoogle Scholar