Public Finance for Cities The Benefit Principles from Wicksell to Stiglitz

Public Finance for Cities presents a comprehensive and modern examination of the benefit principle of taxation--the concept that individuals should contribute to public revenue in proportion to the benefits they derive from government services. It revisits and builds on this foundational concept in public finance through a new analytical model that adapts the principle to the realities of contemporary fiscal systems, governance, and economic diversity. Combining conceptual discussion with empirical insights, the authors trace the evolution of benefit-based taxation in economic thought and public policy, presenting a rich synthesis of global literature. Drawing from successful international practices, the book examines how municipalities and countries have implemented benefit-oriented approaches to improve efficiency, fairness, and accountability in tax design and local service delivery, demonstrating how aligning taxation with the benefits of public services can foster stronger fiscal discipline, enhance trust in the government, and encourage citizen participation. The book concludes by proposing a set of municipal finance reforms inspired by the benefit principle, offering policymakers and practitioners a framework for designing sustainable, transparent, and equitable fiscal systems.

Shibani Mishra, Assistant Professor of Economics, Binayak Acharya College, Berhampur, Odisha,Alok Kumar Mishra, Professor of Economics, School of Economics, University of Hyderabad, Telangana

Dr Shibani Mishra is an Assistant Professor of Economics at Binayak Acharya College, Berhampur, under the Higher Education Department, Government of Odisha. She has published several peer-reviewed research papers in both international and national journals of repute. Dr Mishra has also worked as a research analyst under the HUDCO Chair programme at the University of Hyderabad and presented papers at various national and international conferences. She has an MA in Economics and a PhD in Urban Public Finance from the University of Hyderabad, India. Her current areas of research include land, housing, urban and transport economics, and public finance.


Dr Alok Kumar Mishra is a Professor at the School of Economics, University of Hyderabad, an Institution of Eminence. He brings a unique blend of academic rigour and industry experience, having held key positions at the Bank of New York Mellon, Shinsei Bank in Tokyo, Evalueserve Private Limited in Gurgaon, and the National Institute of Bank Management (NIBM), Pune. A recipient of the Baden-Württemberg Fellowship (2014), the Chancellor's Award (2016), and the Young Economist Award (2023), he has published over sixty peer-reviewed papers and authored four books, including Smart Cities and the Poor (Routledge). His research spans financial markets, risk management, sustainable development and urban economics, land and transportation economics, and applied econometrics.