The study of public economics has undergone dramatic changes in the past two decades. Major developments in economic theory have revolutionized the subject and have changed the way we view the role of government. The constraints of information and institutions have called into question the...

The paper provides an overview of reasons for and nature of dramatic changes that have taken place in public economics in the past few decades. It gives a brief account of innovations in public economics that have taken place in large part due to developments in economic theory. It is argued...