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This second volume of the Handbook of Public Economics is a continuation of volume one, with chapters surveying the literature on both the tax and expenditure areas of public economics.The material presents an up-to-date survey of the field of public economics by those actually doing work on the frontier of the subject, and is written in a manner that renders it useful to the public finance specialist, whilst remaining understandable for the student and non- specialist. For more information on the Handbooks of Economics series, please see our homepage on http://www.elsevier.nl/locate/hes