The Failure of Public Finance

A number of explanations are commonly presented in public finance texts a s reasons why government intervention in the economy will improve performance. This paper questions the validity of each of\them. The paper examines the merit goods argument, equity considerations, growth and development and stabilization and finds the arguments offered in their behalf to be unpersuasive. Public finance as presented in textbooks is seen as relying on rather dubious normative arguments. Introduction A number of explanations are commonly given as reasons why government intervention in the economy will improve performance. This paper questions the validity of each of them. I Economics and Finance Department, University of Central Arkansas. The authors would like to thank the two ;itiotiyiiious reviewers for their comments