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When this book was first published in 1987 it was widely recognised as a comprehensive and definitive text on the economics of the welfare state - its efficiency, its fairness and its relevance to the whole population, not just to the poor. Although written specifically for students of economics, a diverse readership, including students of social administration and public policy, has been kept in mind throughout. Each of the technical chapters has an appendix which explains the results in non-technical terms.