Course
Code
Credits (ECTS)
Instructor
Classes
Aims
Course Materials
Assessment
Teaching
methods
Public Economics
FIC 4
2
Senior lecturer. Natalia Rakuta
One 2-hour lecture and 2-hour seminar per week
This course provides a basis for the economic analysis of public policy issues. It analyzes the role
of public sector in the economic system, its functions, management techniques, the sources of
government expenditures and the efficiency estimation of public policies.
The focus of the course is on the main parts of public finance – taxation and spending. It is also
examines issues related to the role of the state, public choice, management of public assets and
liabilities, and fiscal federalism.
The prerequisites of the course are intermediate microeconomics and macroeconomics, economic
policy theory, taxation theory, calculus.
The main aim of the course is in the development of analytical tools and their application to key
policy issues relating to the spending, taxing and financing activities of government.
After studying the course students will
- know main theoretical concepts and models,
- be able to analyze the influence of taxation and public spending on the economy,
- be able to discuss different questions, connected with public sector economics, and solve
problems.
1. Stiglitz, J. Economics of the public Sector, (3rd ed.), Norton, 1999.
2. Connolly, S. and A. Munro, Economics of the Public Sector. Prentice Hall Europe, 1999
3. Harvey Rosen, Ted Gayer, Robert Guell. Public Finance, 9th Edition, Mcgraw-Hill/Irwin, 2009.
One written examination (pass/fail)
Lectures, seminars, individual and group presentations, home tasks.
Weekly schedule:
№№
Topics
Total
Self work
Lectures
Seminars
1
The Role of Government
6
2
2
2
2
Equity and Efficiency Principles
12
6
2
4
3
Public Choice
8
4
2
2
4
Taxation and Economic Efficiency
12
6
2
4
5
Optimal Taxation
8
4
2
2
6
The Analysis of Expenditure Policy
and Social Security
8
2
2
7
Managing the Public Sector's Assets.
CBA.
8
2
2
8
Fiscal Federalism
6
2
2
2
TOTAL
68
32
16
20
4
4