Teaching Public Economics with Special Reference to Australian and US Cultures

• Author: Peter Abelson
• DOI: http://doi.org/10.1111/1467-8462.12318
• Published date: 01 September 2019
• Date: 01 September 2019

Teaching Public Economics with Special Reference to

Australian and US Cultures

Peter Abelson*

Abstract

This article discusses how teaching public

economics is, and should be, related to

national cultures. The article shows how the

US culture of distrust of government influences

the two major US texts (Rosen and Gayer 2014;

Gruber 2016) that dominate the teaching of

public economics in Australia and elsewhere.

By contrast, Stiglitz and Rosengard’s (2015)

text on public economics emphasises the role of

government in providing social welfare. These

traditions may be described as neo-liberal and

social democratic respectively. I conclude that

the social democratic approach reflects Aus-

tralian culture and is more appropriate for

teaching public economics in Australian

universities.

Analytic work begins with material provided by our

vision of things, and this vision is ideological almost by

definition.

[Schumpeter 1954]

The object of government in peace and in war is not the

glory of rulers or of races, but the happiness of the

common man.

[Beveridge 1942]

From birth to death, our lives are affected in countless

ways by the activities of government.

[Stiglitz and Rosengard 2015]

1. Introduction

Does, or should, economic theory vary across

different countries? More modestly, should the

weight given to different issues in economics

vary across countries? If so, to what extent

should this reflect different national cultures or

institutions? Importantly, what are the impli-

cations for teaching economics in our (Austra-

lian) universities?

These are large, and indeed daunting,

questions, which is perhaps why they appear

to be rarely discussed. But, if there are

significant cultural or political differences

between countries, these questions surely

deserve attention. They are of special interest

in the teaching of public economics, which

deals with the fundamental issue of the role of

government in the economy and the provision

of social welfare (the welfare state).

* Applied Economics Pty Ltd, Sydney, NSW 2000

Australia. Email <pabelson@appliedeconomics.com.au>.

I would like to thank Professors Nicholas Barr, Robert

Breunig, Andrew Leigh (now MP), MichaelMcClure and

Glenn Withers as well as colleague Tim Dalton for their

helpfulcomments on a progress draft. I also thank Professors

Harvey Rosen and Jon Gruberfor their responses. While I

have adopted many suggestions, I have not adoptedall of

them and the paper is wholly my responsibility.

The Australian Economic Review DOI: 10.1111/1467-8462.12318

°

C2019 The University of Melbourne, Melbourne Institute: Applied Economic & Social Research,

Faculty of Business and Economics

Published by John Wiley & Sons Australia, Ltd

The Australian Economic Review, vol. 52, no. 3, pp. 279–293