This volume contains the papers, along with the discussant's remarks, presented at a symposium on "Government Inefficiency" held at Diessen am Ammersee, Germany, on 22-25 July, 1980. In addition, the editor has included an introductory essay which tries to set forth the main background ideas that shaped the spirit of the con ference. Moreover, this article intends to give an overview and a basis of information about recent developments in the "theory of publi.c sector inefficiency". The meeting was mainly sponsored by the Stiftung Volkswagenwerk and the Bayrische Landeszentrale fiir Politische Bildungsarbeit. The publication of this volume was also granted by the Stiftung Volkswagenwerk and the Gesellschaft der Freunde der Universitat Augsburg. I am most grateful to these institutions for their efforts. The organization of the conference was handled through the staff of the Lehrstuhl fiir Finanzwissenschaft at the University of Augsburg, Germany. I am indebted to Klaus Norbert Munch, Lothar Semper and specifically to Brunhilde Doll, Peter Biene and Lothar Thiirmer for their cheerful and capable assistance. My thanks are also due to Brigitte Planer for her care in typing the manuscript. Last not least I wish to thank all who have helped to form the program of the conference with their critical ideas. I feel especially indebted to Karl W. Roskamp and, above all, to Wolfgang F. Stolper for his sympathetic cooperation in editing this volume.