During this period, the public economics literature coalesced around a formal framework that treats government as a central actor in allocation, distribution, and stabilization. Researchers emphasize efficiency and equity as intertwined objectives, explore the public goods problem and the distortions created by taxation, and adopt general equilibrium methods to connect policy design with resource use and welfare. The approach blends fiscal policy with microfoundations of household behavior and the institutional choices surrounding taxation and public production to unify diverse topics under a common analytical lens.