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This new fourth edition of this successful textbook discusses the different parts of the welfare system and in particular, cash benefits, the health service and education.

The text argues that the welfare state exists not just to help the underprivileged, but also for efficiency reasons, in areas where private markets would be inefficient or would not exist at all. The book is fully updated and will contain a number of student learning features.

Professor Nicholas Barr is Professor of Public Economics in the European Institute at the London School of Economics. Prior to this he has been a Lecturer, Senior Lecturer and Reader at the London School of Economics.

Table of Contents

Part 1: Concepts
1. Introduction
2. Political theory: Social justice and the state
3. Economic theory 1: State intervention
4. Economic theory 2: Insurance
5. Problems of definition and measurement
Part 2: Cash benefits
6. Insurance: Unemployment, sickness, and disability
7. Consumption smoothing: Old age pensions
8. Poverty relief
9. Strategies for reform
Part 3: Benefits in kind
10. Health and health care
11. School education
12. Higher education
Part 4: Epilogue
13. Conclusion

420 pages, Paperback