Public Finance
Fall 2014
Instructor:
Name: Kadir Nagac
Office: 418
E-Mail: abdulkadir.nagac@zirve.edu.tr
Course Description:
This course examines the role of government in private economies. Under
ideal market conditions, competition promotes economic efficiency via Adam
Smith’s “invisible hand”, leaving little role for the government. In some cases,
however, markets fail and government intervention may be desirable. Market
failures to be analyzed include public goods and externalities. In addition to
these market failures, the government may have a role in the redistribution of
income. The course then examines the financing of such government
interventions. Tax systems should be designed to enhance economic
efficiency and to promote an equitable distribution of income
Prerequisites:
Econ 101(microeconomics), Econ 102(macroeconomics) are pre-requisites for
this class.
Textbook and Instructional Materials:
Rosen and Gayer, Public Finance, McGraw Hill, 9th edition
Examinations and Evaluation:
Midterm
Final exam
Homeworks & Quiz & Attendance
30%
40%
30%
No make-up exams will be scheduled. If you will miss an exam for legitimate
reasons, see me well in advance of missing any exams. The final exam will be
comprehensive. Grades will be determined as follows: 80% and above is an “A”, 7079 is a “B”, 60-69 is a “C”, 50-59 is a “D” below 50 is an F.
Class Policies and Procedures:
Turn off your cell phone before class. Or put them on silent mode. Attendance is
rewarded. You can get up to 10% of overall grade as bonus if you attend classes. The
more classes you miss, the lower your bonus attendance grade will be. If you miss
more than 30% of classes you get NO bonus attendance points. I will pass attendance
sheet in every class. If you are late for class,(10 minutes or more) you loose half of
your attendance points. Also it is your responsibility to tell me you are present at the
END OF THAT CLASS!
Tentative Schedule:
Week 1 Introduction (Chap. 1)
Week 2 Tools of Positive Analysis(Chap. 2)
Week 3 Tools of Normative Analysis(Chap. 3)
Week 4 Public Goods (Chap. 4)
Week 5 Externalities(Chap. 5)
Week 6 Political Economy (Chap. 6)
Week 7 Education(Chap. 7)
Week 8 Health Care Market (Chap. 9)
Week 9 Social Security (Chap. 10)
Week 10 Income Redistribution (Chap. 12)
Week 11 Expenditure Programs for the Poor (Chap. 13)
Week 12 Taxation and Efficiency(Chap. 14,15)
Week 13 Turkish Tax System(Chap. 13)
Week 14 Review and Final