Public Goods, Environmental Externalities and Fiscal Competition

Over the last forty years, the field of public economics has emerged as a modern successor to public finance. It has gained importance on the research agenda of economists and in the curricula of economics depa- ments. It has become a diversified field, rich in theoretical developments and substantive applications. Beyond the traditional concerns with t- ation or public goods, a number of new concerns have entered the scene, concerning for instance public sector pricing, the management of public firms, social security or federalism. A comprehensive presentation of the field extends nowadays beyond the scope of textbooks and requires access to a growing specialised literature. The present volume, collecting 22 papers published by Henry Tulkens over the period 1978-2003, is offered as an illustration of these new developments. The illustration has three dimensions: approach, s- ject matters and methods. Coming from a single author, admittedly assisted by 18 co-authors, the different papers are illustrative of an underlying general approach, which I like to label ''operational public economics''. With these simple words, I mean an approach under which issues in public economics are formulated so as to capture essential elements of actual situations. Ty- cally, this leads to theoretical models more complex than standard te- book formulations. It is then up to the public economist to extend the theory as needed to fit the situation.