'Professor Nicola Acocella has provided an illuminating and challenging account of the foundations of economic policy. His analysis covers the established ground as well as providing new departures, the book is a rich addition to the existing literature.' Amartya Sen, Trinity College, Cambridge

• 1. Introduction; Part I. Defining Social Preferences: 2. Individual preferences and social preferences; 3. The Pareto principle and 'new welfare economics'; Part II. Social Choices, Government and the Market: 4. Theories of justice, welfare functions and the social optimum; 5. Social preferences and institutions; 6. Market failures: microeconomic aspects; 7. Market failures: macroeconomic aspects; Part III. Normative and Positive Theory of Economic Policy: 8. The normative theory of economic policy; 9. 'Non-market' failures: elements of a positive theory of economic policy; Part IV. Microeconomic Intervention: 10. Microeconomic policies for efficiency; 11. Redistributive policies and optimal taxation; 12. Social choice and cost-benefit analysis; Part V. Macroeconomic Intervention in a Closed Economy: 13. Macroeconomic objectives and monetary policy; 14. Macroeconomic objectives and fiscal policy; 15. Incomes and price policies; Part VI. Macroeconomic Intervention in an Open Economy: 16. Monetary systems and exchange rate regimes; 17. Balance of payments policies; 18. Economic policies in an open economy; Part VII. Problems of 'Regime' in Government Action, Domestic and International: 19. Consistency in public choice; Index; References.

'Professor Nicola Acocella has provided an illuminating and challenging account of the foundations of economic policy. His analysis covers the established ground as well as providing new departures, the book is a rich addition to the existing literature.' Amartya Sen, Trinity College, Cambridge

• 1. Introduction; Part I. Defining Social Preferences: 2. Individual preferences and social preferences; 3. The Pareto principle and 'new welfare economics'; Part II. Social Choices, Government and the Market: 4. Theories of justice, welfare functions and the social optimum; 5. Social preferences and institutions; 6. Market failures: microeconomic aspects; 7. Market failures: macroeconomic aspects; Part III. Normative and Positive Theory of Economic Policy: 8. The normative theory of economic policy; 9. 'Non-market' failures: elements of a positive theory of economic policy; Part IV. Microeconomic Intervention: 10. Microeconomic policies for efficiency; 11. Redistributive policies and optimal taxation; 12. Social choice and cost-benefit analysis; Part V. Macroeconomic Intervention in a Closed Economy: 13. Macroeconomic objectives and monetary policy; 14. Macroeconomic objectives and fiscal policy; 15. Incomes and price policies; Part VI. Macroeconomic Intervention in an Open Economy: 16. Monetary systems and exchange rate regimes; 17. Balance of payments policies; 18. Economic policies in an open economy; Part VII. Problems of 'Regime' in Government Action, Domestic and International: 19. Consistency in public choice; Index; References.

'Professor Nicola Acocella has provided an illuminating and challenging account of the foundations of economic policy. His analysis covers the established ground as well as providing new departures, the book is a rich addition to the existing literature.' Amartya Sen, Trinity College, Cambridge

• 1. Introduction; Part I. Defining Social Preferences: 2. Individual preferences and social preferences; 3. The Pareto principle and 'new welfare economics'; Part II. Social Choices, Government and the Market: 4. Theories of justice, welfare functions and the social optimum; 5. Social preferences and institutions; 6. Market failures: microeconomic aspects; 7. Market failures: macroeconomic aspects; Part III. Normative and Positive Theory of Economic Policy: 8. The normative theory of economic policy; 9. 'Non-market' failures: elements of a positive theory of economic policy; Part IV. Microeconomic Intervention: 10. Microeconomic policies for efficiency; 11. Redistributive policies and optimal taxation; 12. Social choice and cost-benefit analysis; Part V. Macroeconomic Intervention in a Closed Economy: 13. Macroeconomic objectives and monetary policy; 14. Macroeconomic objectives and fiscal policy; 15. Incomes and price policies; Part VI. Macroeconomic Intervention in an Open Economy: 16. Monetary systems and exchange rate regimes; 17. Balance of payments policies; 18. Economic policies in an open economy; Part VII. Problems of 'Regime' in Government Action, Domestic and International: 19. Consistency in public choice; Index; References.