direct taxes

personal and corporate income taxes, property taxes, and taxes on capital gains
are directly levied on persons and corporations

distribution

of money, goods, and services to citizens, residents, and clients of the state

extraction

of resources - money, goods, persons, and services - from the domestic and international environments

fairness

1. requires all people to be treated equally
2. demands that individuals be treated according to performance
3. people are treated according to their needs

gross domestic product (GDP)

total value of goods and services provided by a country's residents in a year

indirect taxes

include sales taxes, value-added taxes, exercise taxes, and custom duties
commonly included in the prices of goods and services that consumers buy

policy goods

economic welfare, quality of life, freedom, and personal security

policy outcomes

represent the results that actually follow from government activity

political goods

politicians have incentives to pursue political goals that seek to satisfy the values and aspirations of the citizens

public policy

consists of all the authoritative public decisions the government make - the policy outputs of the political system

policy outputs

the formal actions that governments take to pursue their goals
different instruments of policy
4 types: extraction, distribution, regulation, symbolic outputs

regulation

of human behavior - the use of compulsion and inducement to bring about desired behavior

rentier states

derive much of their revenue from selling oil and natural resources

symbolic outputs

used to exhort citizens to engage in desired forms of behavior, build community, or celebrate exemplary conduct