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This collection of papers is intended as a background to the field of discussion in public finance. Two of the main strands of thought in the collection are concerned with the theory of public expeniture. The first asks under what conditions can Pareto optimality be achieved in an economic system in which some goods supplied are indivisible? The other strand is concerned with the positive theory of the public sector - how can economic analysis be used in order to explain how the size and composition of the budget is actually determined?