‘Ludger Schuknecht has provided a forceful and forensic examination of longer-term trends in the development of the fiscal state, coupled with a judicious survey of different measures for assessing the effectiveness of expenditure. The appeal for a rules-based approach, and the warning on the long-term consequences of higher debt levels, is more important than ever.’
Harold James - Princeton University
‘In many industrialised countries, people expect more and more from their governments. This has led to pressures on government finances - in particular, growing levels of public debt and a crowding out of public investment by growing social expenditure. Ludger Schuknecht’s book is a fascinating description and analysis of these trends. It should be read by both policymakers and academics.’
Clemens Fuest - Institute for Economic Research
‘This is a most timely volume on the role of the public sector in modern societies, comprehensive and well researched. Ludger Schuknecht, who has a solid experience in economic policymaking, presents a panoramic view of the enormous growth of public expenditures in the past 150 years and of the wide scope of present-day government activities. A major strength of the book is its consistent use of cross-country comparisons, demonstrating wide differences in the size and performance of the public sector. He asks the fundamental question: what should governments do and how should they do it? And he dares to provide an answer to this highly contentious issue. In sum, this a comprehensive and balanced account that deserves serious attention - by social scientists as well as by all camps across the political spectrum.’
Lars Jonung - Lund University
‘This wonderful book deals with the growing role of public expenditure, and the function of governments as such. It is comprehensive, covering all OECD countries and overseeing a long period of time. A very rich set of data is presented in terms of graphs and tables, and the author's profound knowledge of economic theory at the same time offers a framework for understanding and evaluating a complex reality. For those who want to understand the basic trends of our time, the book is a must-read.’
Hans-Werner Sinn - Ludwig Maximilian's University, Munich, Former President of IFO
'This book could be a useful source of readings for a course on public finance, and provides well-summarised data on public expenditure for political economy and similar studies.'
Mark Fabian
Source: Economic Record