PM6144 PUBLIC ECONOMY AND BUDGETING ISSUES
AY2021/22 SEM2
For English MPA in NCPA
Nanyang Technological University
CONTACT INFORMATION
Instructor: Dr. Soojin Kim
Office: HSS-05-02
Phone: +65-6513-8179
Office Hour: By Appointment
Email: sjkim@ntu.edu.sg
COURSE MATERIALS
Required Textbook: There is no one required textbook for this course. Recommended books
are as follows:
a. Gruber, Jonathan. (2013). Public Finance and Public Policy. Worth Publishers (4th ed.).
b. Miller, R. L., Benjamin D.K., & North, D.C. (2003). The Economics of Public Issues, (18th
ed.), Pearson Series in Economics, Prentice Hall.
c. Steinemann, Anne C. (2011). Microeconomics for Public Decisions. Askmar Publishing,
Mensolo Park, CA.
d. Hillman, A. L. (2009). Public Finance and Public Policy: Responsibilities and Limitations
of Government (2nd ed.). Cambridge; New York: Cambridge University Press.
e. Horn, Murray J. (1995). The Political Economy of Public Administration: Institutional
Choice in the Public Sector. Cambridge University Press.
f. Levy, J.M. 1995. Essential Microeconomics for Public Policy Analysis. Westport, CT:
Praeger.
g. Sackrey, C., Schneider, & G. E., Knoedler, J. (2010). Introduction to Political Economy (6th
ed.). Cambridge, MA: Dollars and Sense, Economic Affairs Bureau.
All required readings (journal articles & book chapters) are available electronically on
NTULearn.
COURSE DESCRIPTION
This course introduces MPA students (you) to an in-depth examination of the forces that
influence the behavior of public administrators engaged in the public sector decision-making
process on economic issues. A fundamental purpose of the course is to train you to have the
economic way of thinking and to show how that approach enables you to make more informed
and better choices at an advanced level. Specifically, in this course, you will be exposed to
concepts and tools that will allow you to: (1) apply economic knowledge to help solve current
public sector challenges; (2) evaluate arguments advocating certain approaches to addressing
policy issues; and (3) incorporate economic principles into how they approach decision in daily
life.
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COURSE OBJECTIVES
By the end of this course, you (as a student) would be able to:
1. Describe the economic and political challenges of public governance.
2. Apply a public service perspective to analyze major themes of the course.
3. Demonstrate skills to research, analyze, synthesize, think critically, solve problems, and
make public decisions.
4. Discuss the significance of responsibilities that come with public decision making.
MAIN CONTENTS OF THIS COURSE
This course is mainly organized along the following themes: (1) Introduction of economic issues
of governance, (2) How to write research proposal and academic papers, (3) Market dynamics:
Supply and demand theory, (4) Policy applications, (5) Market failure (monopoly, information
asymmetry, public goods, and externalities), (6) Government intervention (redistribution and
macroeconomic stabilization), (7) Government failure (focusing on the budget-maximizing
bureaucrat), (8) Businesslike Management - Privatization, deregulation and contracting-out, (9)
Strategic decision-making (Contract Back-in and Public-Private Partnerships), (10) The new
economics of organization and political control of bureaucracies, (11) Tiebout model and local
public market, (12) New institutionalism and policy adoption/diffusion, and (13) Financial crisis
and public administration.
GRADING POLICY
Letter grades will be granted based on a standard 100 percent scale according to the grading
policy of NCPA. All written assignments will be graded on a 100 mark scale.
Assessment
Breakdown of Components
Group/ Individual
Final Examination
Individual
40%
Class Participation
Individual
10%
A Movie Reaction Paper
Individual
20%
Research Project
Group
30%
Total:
%
100 %
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COURSE REQUIREMENTS
The following is detailed information of part of students’ overall assessment:
*Class Participation (10% but very crucial!)
• Students are required to complete weekly assigned readings and arrive to class prepared to
critically discuss the week’s readings. Discussion greatly enriches the classroom experience,
as it facilitates a genuine exchange of knowledge and experience among students, and
between students and faculty. Each student is thus expected to be an active and constructive
participant during each class session. Note that you receive scores (marks) of 50 and below
if you never participated in class discussion in the entire semester.
• Any behavior that disturbs classes in progress (chatting unrelated to class, being late, etc) and
any activity that is unrelated to class (texting, internet surfing, gaming, etc) will negatively
affect your grades for class participation.
• Absence from class without a valid reason will affect your overall course grade. Valid reasons
include falling sick supported by a medical certificate (MC) and participation in NTU’s
approved internal/external activities supported by an excuse letter from the relevant bodies.
There will be no make-up opportunities for in-class activities.
• If you miss a class, you must inform me via email (sjkim@ntu.edu.sg), at least, prior to the
start of the class.
• You need to check your NTULearn account regularly. Course syllabus, lecture slides,
cases, readings, and announcement(s) will be posted on the course Blackboard. The
lectures may cover materials that are not addressed in the assigned readings.
• You are responsible for completing assignments by their deadlines. Note that an instructor
only accepts assignments that are students’ own original works. Should I agree to accept a late
assignment not covered by a prevailing university policy, I will reduce your grade for the late
assignment by no less than 10% per day. There are no “re-dos,” no extra credit, and no
substitutionary credit.
*A Movie Reaction Paper (20%): The detailed guideline will be provided in the class.
• Submit your final research paper that you have written no later than 25 March,
11:59pm to a Turnitin assignment menu in course blackboard.
*Research Project (30%): (Note that presentations will proceed for Weeks 12-13)
• This course is intended to help develop students’ own research agenda in their specialized
field or interests. Each group should identify a topic of contemporary public issues (e.g.,
economic development, financial/fiscal policy, income and wealth inequality, labor market,
healthcare, social insurance, education, transportation, infrastructure, housing, zoning,
economic regulation, environment, information technology, emergency management, defense,
foreign/security policy, population policy, public utility, international trade, tax policy and so
on).
• *1 single-spaced page proposal and outline (indicate your research topic and main
research questions) must be approved by Week 8.
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• For the final research paper, you are required to present a brief outline/summary of research
progress (note that you are allowed to incorporate your potential final year project in this final
research paper) about 40 minutes. Q&A session will be followed after each presentation.
• Based on the feedback, submit your final research paper that you have written no later
than 15 April, 11:59pm to a Turnitin assignment menu in course blackboard.
• Before submitting your final paper, please check your grammar errors (spelling) and format in
accordance with the instructor’s guide.
• The detailed guideline will be provided in the class.
CLASS SCHEDULE
Week
No.
1
(14 Jan)
2
(21 Jan)
3
(28 Jan)
Topics
Readings/Activities
Course Introduction
Levy (1995), pp. 1-5; Ch. 1-2;
Hubbard & O’Brien (2008), pp. 8-11;
Steinemann (2011), Ch. 1.
▪ Getting oriented
▪ Review syllabus (Explain how to
conduct written assignments)
▪ Basics of Market Dynamics and
Justification of Government
Intervention
How to write
a research proposal (paper)
Policy Application of Market
Dynamics
& Market Failure
▪ Supply and Demand Theory
▪ Market Failure Cases: Monopoly,
Information Asymmetry, Public
Goods, and Externalities
▪ Rationales for Public Policy
▪ Class exercise: Breakdown of your
daily life (Market vs. Public
Economy)
▪ No assigned reading.
Levy (1995), Ch. 10, 11, & 13;
or Steinemann (2011), Ch. 6 & 11
or Keating & Keating (2009), Ch.3,
pp.40-42, pp.107-109, & pp. 153-159.
▪ Class exercises (discussion):
(1) Kidneys for Sale;
(2) Keeping the Competition Out
(e.g., Controlling Carbon Emissions)
4
Other Justifications for Government
Intervention
4
(4 Feb)
▪ The Growth of Government
▪ Changes of Government’s Main
Role towards Redistribution and
Macroeconomic Stabilization
▪ The evolution of budget idea and
fundamentals of public budgeting
▪ Power game (Politics);
Development & Reforms of Public
Budgeting
Government Failure
5
(11 Feb)
▪ Political Market: Capture Theory
▪ Rent-seeking behavior
▪ Budget-Maximizing Bureaucrats (or
guardians of public interests?)
▪ New Institutionalism
(elected vs. appointed internal
actor’s policy adoption and
implementation)
Levy (1995), Ch. 6; Hillman (2009),
Ch. 10; Mikesell (2014), Ch. 1-2;
Hou (2006)
▪ Class exercise (discussion):
Chongoria Case of Budgeting
Hillman (2009). Ch. 2;
Niskanen (1971), Ch. 2 & 4; Eom et al.
(2017); Mikesell. (2014), Ch. 2
▪ Class exercises (discussion):
(1) Why or Why Not Big
Government? (Left vs. Right);
(or) (2) Restricting Collective
Bargaining Rights of Public
Employees
▪ No assigned reading.
Movie Week
6
(18 Feb)
▪ No Class but will have
consultations for your final paper
(upon request)
Strategic Decision Making I:
Businesslike Management
7
(25 Feb)
▪ New Public Management (NPM) Privatization; Deregulation;
Government Contracting Out
▪ Rationales and Challenges
▪ Choose one or two movie(s) in the
recommended movie list to watch
yourself and then prepare your
reaction paper
Brown & Potoski (2003); Kim (2017);
Rho (2017); Johnston, Romzek, &
Wood (2004)
▪ Class exercises (discussion):
(1) Vanishing Volunteers;
(2) Private Security Contracts in
Afghanistan
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Strategic Decision Making II:
The Third-Party Governance
8
(4 Mar)
▪ Contracting Back-in;
▪ Collaborative Management: PublicPrivate Partnerships (PPPs); Social
Enterprises
▪ Rationales and Challenges
Strategic Decision Making III:
Public Budgeting Issues
9
(11 Mar)
▪ Revenues of PB; Capital Budgeting
and Debt Finance; Tax Management
and Local Revenue Diversification
(e.g., user fees and charges; lotteries)
Contemporary Public Policy Issues
10
(18 Mar)
▪ Policy Adoption/Diffusion
▪ Participatory Budgeting
▪ Policy Effectiveness (feedback):
Focus on Citizen Satisfaction
McGuire (2006); Kim & Ryu (2017);
Chen (2009); Hefetz & Warner (2004);
Kim & Kwa (2020)
▪ Class exercise (discussion):
(1) Crummy Contract;
(2) Singapore Sports Hub Project
Lee, Johnson, & Joyce (2013), Ch. 6 &
13; NYC (n.d.); Gilmour (2012);
Kramer (2010)
▪ Class exercise (discussion):
(1) Lottery (gambling) Should be
Taxable?; (2) A Carbon Tax is
efficient?: Pros vs. Cons (also
externality-related)
Berry & Berry (1990); Shipan &
Volden (2012); Kim & Schachter
(2013); Kim et al. (2021); Van Ryzin
(2007)
▪ No assigned reading/ Q&A session
11
(25 Mar)
Final Test Review
(through Zoom)
12
(1 April)
Project presentation
13
(8 April)
Project presentation
▪ A Movie Reaction Paper Due
▪ No assigned reading/ Q&A session
▪ No assigned reading/ Q&A session
*Note: The schedule is subject to change.
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Appendix A (Class Participation)
Grades
A+ (Exceptional)
A (Excellent)
A- (Very good)
Criteria
1. Student was present for every class.
2. Student was always on time for class.
3. Student was fully engaged and actively involved during
every class.
B+ (Good)
B (Average)
B- (Satisfactory)
1. Student was absent 2 times or fewer for class.
2. Student was usually on time (s/he was late to class only 1 or
2 times).
3. Student was usually engaged.
C+ (Marginally
satisfactory)
C (Borderline)
1. Student was absent 3-4 times or fewer for class.
2. Student was often on time (s/he was late to class 3-4 times).
3. Student was sometimes engaged and/or sometimes off-task,
texting (with cell-phone), sleeping, etc.
C- (Unsatisfactory)
D (Clearly
unsatisfactory)
1. Student was absent 5 times or fewer for class.
2. Student was often late (5+ times).
3. Student was often not engaged, and/or often off-task, texting
(with cell-phone), sleeping, etc.
F (Unacceptable)
1. Student was absent more than 7 classes (cases of unexcused
absence).
Or
2. Student was involved in unethical behaviors (e.g., leaving
during the class without notice, rarely respectful to teacher
and rest of class by consistently disrupting the class such as
internet surfing, gaming, or chatting with peers).
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Appendix B (A Movie Reaction Paper)
Grades
1.
2.
A+ (Exceptional)
A (Excellent)
A-(Very good)
3.
4.
1.
2.
B+ (Good)
B (Average)
B- (Satisfactory)
3.
4.
1.
2.
C+ (Marginally
satisfactory)
C (Borderline)
3.
4.
1.
2.
C- (Unsatisfactory)
D (Clearly
unsatisfactory)
F (Unacceptable)
3.
4.
1.
Criteria
The application of theoretical and practical perspectives covered
in the class to the research is very persuasive and outstanding.
Demonstrates a strong ability to think analytically and critically
and with some degree of discovery on the chosen topic supported
by a substantial amount of research.
Writing is clearly logical, uses appropriate research design and
terminology, and is varied enough to maintain readers interest.
Sentences are complete and grammatical, and they flow together
easily. Words are chosen for their precise meaning. Minimal
errors in punctuation and spelling; correct and proper citation
format.
The application of theoretical and practical perspectives covered
in the class to the research is acceptable and relevant.
Demonstrates some ability to think analytically and critically and
with some degree of discovery on the chosen topic supported by a
fair amount of research.
Writing is clear, uses appropriate research design and
terminology, and somewhat varied.
For the most part, sentences are complete and grammatical, and
they flow together easily. With a few exceptions, words are
chosen for their precise meaning. 2 to 3 errors in punctuation and
spelling; relatively correct and proper citation format.
The application of theoretical and practical perspectives covered
in the class to the research is not persuasive or relevant.
Demonstrates an effort to explore the chosen topic in a thoughtful
manner supported by some research.
Writing is rarely neither clear nor varied, and in some instances
the terminology is not appropriate.
Some sentences are incomplete/halting, and/or vocabulary is
somewhat limited. 4 to 5 errors in punctuation and spelling; meet
the criteria of basic citation format.
The application of theoretical and practical perspectives covered
in the class to the research is unacceptable.
Demonstrates inadequate thinking on the chosen topic and
supported by inadequate relevant research.
Writing is confusing, repetitive, poorly organized, and difficult to
follow.
Cannot focus on the ideas and approaches employed because of
difficulties with grammar and appropriate vocabulary. More than
5 errors in punctuation and spelling; does not meet the basic
citation format.
Demonstrates an extremely poor study of the chosen topic and an
obvious lack of relevant research.
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2. Do not show any efforts to apply theoretical and practical
perspectives covered in the class to the research.
3. Improper use of technical language, with numerous and
distracting errors in punctuation and spelling; incorrect use of
referencing (citation format) throughout most of the paper.
4. Significance of originality and authenticity: If the paper is
identified as not being original, and/or not done by the student(s).
Or
5. No submission
*Note: For each day your submission of assignment is late after the deadline, 5 marks will be deducted from
the final grade.
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Appendix C (Research Project)
Grades
A+ (Exceptional)
A (Excellent)
A-(Very good)
B+ (Good)
B (Average)
B- (Satisfactory)
C+ (Marginally
satisfactory)
C (Borderline)
C- (Unsatisfactory)
D (Clearly unsatisfactory)
Criteria
1. Clear description of specific topic(s) you chose, with adequate background information to provide context and reasoning
behind the research of public decision making.
2. Shows originality of thought, with clear links to major topic(s) from direct and adjacent research materials relating to
public service.
3. Demonstrates engagement with the topic(s), recognizing multiple dimensions and/or perspectives with elaboration and
depth to suggest effective public decision making
4. Offers considerable insight of the significance of public responsibilities
5. Sentences are complete and grammatical, and they flow together easily. Words are chosen for their precise meaning.
Minimal errors in punctuation and spelling; correct and proper citation format.
1. Adequate description of specific topic(s) you chose, with some background information to provide context and reasoning
behind the research of public decision making.
2. Shows clarity of thought, with some links to major topic(s) from direct and adjacent research materials relating to public
service.
3. Demonstrates engagement with the topic(s), recognizing few dimensions and/or perspectives to suggest effective public
decision making
4. Offers some insight of the significance of public responsibilities
5. For the most part, sentences are complete and grammatical, and they flow together easily. With a few exceptions, words are
chosen for their precise meaning. 2 to 3 errors in punctuation and spelling; relatively correct and proper citation format.
1. Brief description of specific topic(s) you chose, with limited background information to provide context and reasoning
behind the research of public decision making.
2. Shows weak clarity of thought, with only a few links to major topic(s) from direct and adjacent research materials relating
to public service.
3. Shows some engagement with the topic(s), without elaboration, to suggest effective public decision making
4. Offers basic observations but rarely original insight of the significance of public responsibilities
5. Some sentences are incomplete/halting, and/or vocabulary is somewhat limited. 4 to 5 errors in punctuation and spelling;
meet the criteria of basic citation format.
1. Unclear description of specific topic(s) you chose, with weak (unclear) background information to provide context and
reasoning behind the research of public decision making.
2. Shows limited thought, without explicit links to major topic(s) from direct and adjacent research materials relating to
public service.
3. Shows minimal engagement with the topic(s), failing to recognize multiple dimensions and/or perspectives, to suggest
effective public decision making
4. Lacking even basic observations to offer insight of the significance of public responsibilities
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5. Cannot focus on the ideas and approaches employed because of difficulties with grammar and appropriate vocabulary.
More than 5 errors in punctuation and spelling; does not meet the basic citation format.
F (Unacceptable)
1. No description of specific topic(s) you chose, with no background information to provide context and reasoning behind the
research of public decision making.
2. Failure to link major topic(s) with direct and adjacent research materials relating to public service
3. Failure to suggest effective public decision making
4. Failure to offer any observation or insight of the significance of public responsibilities
5. Improper use of technical language, with numerous and distracting errors in punctuation and spelling; incorrect use of
referencing (citation format) throughout most of the paper
6. Significance of originality and authenticity: If the paper is identified as not being original, and/or not done by the
student(s).
Or
7. Failure to submit Research Paper
*Note: For each day your submission of assignment is late after the deadline, 5 marks will be deducted from the final grade.
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