Public Economics

2019/2020

Academic Year

ENG

Instruction in English

3

ECTS credits

Authors

Kuchumova (Paramonova), Yulia A.

Petukhova, Margarita

Delivered at:

Department of Economics

Course type:

Elective course

When:

3 year, 4 module

Instructors

Artyukhova, Elena

Kuchumova (Paramonova), Yulia A.

Course Syllabus

Abstract

The course is structured into two parts. The first part of the course (called Public Expenditures) explores how governments spend public money. This part provides rationales for government intervention in the market, including public goods and spatial aspects of their provision (local public goods). This leads us to a discussion of local government and fiscal federalism. The second part of the course (called Public Finance) explores how governments raise public money. We will begin by considering the optimal commodity and income taxation, moving then into a discussion of tax evasion and avoidance that coherent to practical tax administration. We will also explore efficiency costs of taxation and tax incidence.

Learning Objectives

• Study on the role of the government in the economy, on the mechanisms and outcomes of government intervention

Expected Learning Outcomes

• Students should acquire an understanding of the principles and methods of analyzing various government programs such as taxes and transfers as well as their effects on economic agents

Course Contents

• Public goods
• Club goods and local public goods
• Intergovernmental relations: Fiscal federalism; Decentralization
• Tax burden and tax incidence
• Optimal commodity taxation
• Optimal income taxation
• Tax evasion and avoidance

Assessment Elements

• weekly homework assignments
• midterm exam
• Written examination

Interim Assessment

• Interim assessment (4 module)
  0.3 * midterm exam + 0.2 * weekly homework assignments + 0.5 * Written examination

Bibliography

Recommended Core Bibliography

• Hindriks, J., & Myles, G. D. (2013). Intermediate Public Economics (Vol. Second edition). Cambridge, Massachusetts: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=564828

Recommended Additional Bibliography

• Anthony B. Atkinson, & Joseph E. Stiglitz. (2015). Lectures on Public Economics Updated edition. Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.pup.pbooks.10493