Abstract

The tradition of English classical public finance thinks the government are out of the society and can intervene it. Base on former thought and the market failure theory, the mainstream public finance has a clear tendency to oppose the market and the government. This approach not only ignored the political functions of government but also cannot explain the PPP and NPM. The cameralism’s view of the government provided new ideas for explaining this issue. Through the analysis and comparison of the financial thoughts of Britain and Germany before the 19th century, this paper clarifies the evolutionary logic of British fiscal thought, compares the similarities and differences between the British and German financial thoughts. Besides this paper also discusses the roots of these two traditions view of the government. The fiscal theory of cameralism not only reflects the subjective initiative of the government but also conforms to the reality of our country. These traditions interdisciplinary research tendency should also be re-emphasized.

Highlights

  • There are two different fiscal traditions in the development history of fiscal theory

  • All the above discourses essentially prove the view that any kind of fiscal thought is not generated out of thin air, and is closely related to its specific political system and social environment

  • As the main representative of western fiscal doctrines before the 19th century, the most important difference between cameralism and British classical fiscal doctrine is concentrated in how to view the government's positioning. This difference still comes from differences in the political system and social environment

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Summary

INTRODUCTION

There are two different fiscal traditions in the development history of fiscal theory. The first is the Anglo-Saxon public finance tradition which originated in British classical political economics, was jointly developed and transformed by British and American scholars. The main differences between the two fiscal traditions are the different perceptions of the role of government in economic society: The former believes that government sector are independent of ordinary members of society and achieve their own goals through intervention in the economyWagner2005 The latter sees the economic system as consisting of two parts---the public sector (Staatswirtschaft) and the private sector (Privatwirtschaft), which have equal status (Musgrave, 1985). It is true that the Anglo-Saxon public finance tradition has played an important role in promoting the development of public finance This is reflected in the systematic, rigorous, and scientific aspects of fiscal research. Treat the government as a participant in economic activities (Trib,1984,1987)

Private sector
CONCLUSION

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