JEL code H
Public economics
How should governments tax, spend and provide public goods?
Emerged 1954
Paul Samuelson's three-page article “The Pure Theory of Public Expenditure” gave the first rigorous definition of a public good and asked how much of such goods a government should provide.
An example
Kansas cut income taxes sharply in 2012, expecting growth to pay for them. Revenue fell short and the legislature reversed most cuts in 2017.