PAD 5004
University of Colorado at Denver Graduate School of Public Affairs
Economics and Public Finance
Spring Semester, 2007
I. Instructor: Tamara Brod
E-mail:
michaelbrod@comcast.net
Phone:
Home 303-583-6933
Work: 303-963-3309
(CCU Office Hours: Mon 11:00 – 3:00, Wed 11:00 – 6:00 feel free to call)
Office Hours: Additional Online Student phone contact by appointment
Online Chat room: Wednesday evenings from 8:00 pm – 9:00 pm, MST
Class Schedule: January 16, 2007 – May 12, 2007
II. Course
Course Title:
Course Number:
Course Credits:
Economics and Public Finance
PAD 5004
3 Semester Credits
III. Course Description
The three core areas covered in the text for this course are as follows1:
1) Externalities and Public Goods. Externalities are important public policy issues, and provide
context to study the public sector and its relationship to the economy. Externality topics covered
in this section are current issues in environmental protection and sustainability such as acid rain
and global warming, and health externalities. Other key topics are education, fiscal federalism,
creating and using a cost/benefit analysis, and political economy/public choice issues.
2) Social Insurance and Redistribution. In this section, issues of wealth, asset, or income
redistribution are discussed. Social welfare issues including welfare policy; Social Security;
Unemployment Insurance, Workers' Compensation and Disability Insurance and both public and
private health insurance are covered.
3) Taxation in Theory and Practice. This section offers a theoretical presentation of public
finance that focus on the key sources of current policy debate, including capital gains taxation,
1
Gruber, Jonathan. 2005. Public Finance and Public Policy, New York, NY: Worth Publishers.
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estate taxation, and the use of the tax code as a tool of social policy through tax credits for labor
supply, childcare, and other activities.
In addition to the course text, several areas of study are required.
4) Budgeting. This section provides an opportunity for the student to create a budget that meets
requirements of a group of stakeholders in a public policy or public sector arena. Students will
apply the theories in this class to manage the budget creation process.
5) Prerequisite information and economics review: In order to study the topics above, a student
must understand basic economics. Therefore, the first section is a review or introduction of basic
economics, depending on the prior education of the student. In this section, the student will
study supply, demand and equilibrium, utility, marginal change, price elasticity, opportunity
cost, scarcity and choice, comparative advantage and specialization, measurement of economic
performance, and monetary and fiscal policy basics.
6) The Nobel Laureates and other notable economists. To provide perspective, students will
study the development of economic thought by researching select economists and Nobel
Laureates. This element, along with the following, is included to add a breadth of knowledge,
and add a context in which economics and public finance co-exist.
7) Commanding Heights. This PBS documentary and web site provide another form of learning
about globalization and the political and economic development of our economy since the turn of
the last century.
The class format will be a mixture of online presentations via eCollege, student research,
threaded discussion exercises, student presentations, and writing.
IV. Assignments and Evaluation
Assignments are due throughout the semester. This allows me to provide you with constant
feedback and will help you to manage the course load. The participant will be evaluated on two
examinations (20 percent each), a written policy assessment (15 percent), a profile (20 percent),
presentation of the economists (5 percent), two homework assignments (5 percent each) and
participation (10 percent).
Policy Assessment. Each student will be assigned to submit a 5-6 page paper on a current policy
issue as it related to the course content. The policy assessment will be evaluated on your ability
to connect the concepts of class to a current event (say, as found in a newspaper article). Each
paper should identify the situation and the opposing arguments to the issue, identify the market
failure and solution, consider the supply and demand effects of the solution, discuss the balance
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of provision between the markets and government, and recommend policy interventions to
improve the situation.
Examination. Two examinations will be given. Their formats will be mixed: some multiple
choice, some short answer, some true and false, and essay question. The examination will be
designed to test your conceptual, analytical, and factual understanding of the material covered.
Profile. In groups (of 3), students will detail the tax burden and public expenditure benefits for a
hypothetical person. Person profiles will be provided to the group and will contain an overview
of the person’s background (socioeconomic, demographic, geographic, education), their current
circumstances (employment situation, assets, marital/family status), where they live, and what
their interests are. The groups will be responsible for identifying what payments the person
makes to the national, state, and local revenue system, and what benefits the person receives
from federal, state, and local agencies.
Group members will have the opportunity to evaluate each group member’s performance. Free
riding is discouraged and grades will reflect degree of participation and quality of contribution.
The written document is due April 30, 2007, at 4pm. It should not exceed 15 pages, doublespaced. Papers are evaluated on the students’ ability to accurately and thoroughly assess the
person’s tax and expenditure package and, through critical analysis, discuss the implications of
the redistribution system. Evaluation favors arguments presented concisely and persuasively.
Nobel Laureate and Notable Economists Highlights. Two students are assigned a week in which
they will report on two economic figures instrumental in forging the economic landscape we
know today. Each couple will be assigned one key economist and one recipient of the Nobel
Prize for Economics to research.
1) Nobel Laureate. The lead students assigned the Laureate will, in addition to the instructions
below, provide a synopsis of the contribution of that economist to a particular public policy
issue. This synopsis will follow the guide provided, and be posted in that week’s discussion
prior to 5:00 pm Sunday.
All students: Noble Laureates Preparation. Prepare for these discussions by reading information
available at www.nobelprize.org. Click on the “776 Prize Winners” button, the “economics,” and
then the name of the laureate for each week. Read each laureate’s biography, presentation
speech, and prize lecture. Be prepared to discuss who the laureate is, what the main contributions
of his/her work are (especially as they relate to prevailing thought), and how the contribution
applies to public policy.
2) Notable Economist. The lead students assigned for the week will provide the class a brief on
the notable economist using the form provided. This will follow the guide provided, and be
posted in that week’s discussion prior to 5:00 pm Sunday.
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All students: Notable Economist Participation. In the week following Sunday posting, read the
brief provided by the lead student for the week, and post an application of the economist’s
contribution to a policy issue of interest to you in the format provided.
Commanding Heights. Prior to Sunday, March 4, rent a copy from any library, or check PBS for
a scheduled TV showing in your area. You may read the book instead, which is a fast 490 pages
written at the 7th grade level – and available at any library. The book/video chronicles
globalization, politics, and the economic powers over the last 110 years. The Commanding
Heights web site dedicated to this series is listed below. If you have questions or want updates,
this site is up to date. Questions on the first exam will require your having previously watched
or read Commanding Heights. http://www.pbs.org/wgbh/commandingheights/lo/index.html
Attendance and Participation in the Online format. Attendance and participation are expected.
Excessive absence and/or unwillingness to participate in class will result in grade reduction. The
traditional class format is once or twice per week, with face-to-face class time totaling 40 - 45
hours per semester. While this requirement allows us a foundation from which to assess what
attendance ought to be in the online environment, it is not perfect. The instructors can follow the
times and activities of each student while in the online course, that, too is imperfect, as the
student may leave the application open to work on during a day, thus logging thousands of
minutes of ‘class work’, or during a week of travel, a student may not access the class but once.
Either is fine, and a feature of online learning. The requirement remains, however, that 40 hours
of face-to-face time is critical, even if this ‘face-time’ is the student facing the computer for
PowerPoint lectures, posting information, exchanging information and dialog with classmates via
computer, phone, or any other means. I have taken an online Master-level class at CU Denver,
and taught many a class online for both the adult and traditional aged students, in various time
formats (weekend, hybrid, 3-week, 5-week, and 15-week). I believe that the online class-time
and group study is crucial to learning. Therefore, weekly assignments are enforced, and, just as
in the traditional class setting, assignments may be turned in early and not late to accommodate
travel, vacation, and other life circumstances.
V. Grade Composition
Assignments Due
Economic Review
Exam I
Individual
or Group
Individual
Individual
Policy Paper
Individual
Exam II
Individual
Profile
Group
Economists
Budget Homework
Group
Group
% of Final
Grade
5
20
15
20
20
5
5
Due Date
By 11:00pm January 21st
By 11:00 pm March 4
th
By 11:00 pm March 18
By 11:00 pm April 8
th
th
th
By 11:00 pm May 6
By 5:00 pm Assigned Week
By 11:00 pm April 23rd
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Participation
Individual
10
Throughout course and once weekly at a
minimum
VI. Course Information
Document Format
Written submissions should:
• Be double spaced;
• Have 1-inch margins on all sides;
• Be paginated;
• Use Times New Roman 12 pt;
• Contain student name and date on the first page (cover pages are unnecessary); and
• Be stapled in the upper left hand corner.
Contact, Feedback, Time, and Deadlines
The purpose of this course is to learn. I encourage you to maintain contact with me throughout
the semester so that I may facilitate your learning. Please feel free to contact me via phone,
email, chat, or fax. The course load may seem overwhelming. The standard University
expectation is that every credit hour per week requires 2-3 hours of external work. That
calculates to be 6-9 hours per week. You will find it manageable if you work through it steadily
and stay in touch with your classmates and me.
Deadlines are firm.
Resources
The readings for this course are comprised of several books, articles, and handouts. A reference
list for articles will be distributed. Two copies of the Gruber text are available on reserve in the
Auraria Library. The participant is responsible for having access to the following works:
Gruber, Jonathan. 2005. Public Finance and Public Policy, New York, NY: Worth Publishers.
Additional Readings and Video
Yergin, D., & Stanislaw, J. (2002b). The Commanding Heights: The Battle for the World
Economy.
Available at most libraries, bookstores, and larger video rental outlets.
Book: ISBN # 0-684835-69-X
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OR
VHS ISBN # 1-578078-80-6
OR
DVD ISBN # 1-578079-37-3
Other articles and readings will be announced as the semester progresses
Storing Information
As much (if not all) of the work will be done through an electronic medium, I caution you to:
“Save early, save often, save to different locations!” Please, please, please backup your work.
I cannot reinforce this enough.
Academic Honesty
The participant is responsible for understanding and adhering to the university guidelines on
ethical academic behavior. Violations of the ethics and honor code are taken seriously and dealt
with according to GSPA and university procedures. Proper citing of unoriginal ideas is critical
and plagiarism is absolutely unacceptable. If I find you plagiarizing, you will not pass this
course. No exceptions. No second chances. No apologies.
The profiles are group projects and may be worked on jointly. For all remaining assignments,
the participant is expected to complete his/her own assignments unless instructed otherwise.
Special Circumstances
Any person with circumstances that may affect the student’s performance should speak with the
instructor at the beginning of the semester or as soon as an issue arises. Accommodation will be
made for legitimate and documented reasons.
Course Flexibility
Each section is divided into PowerPoint lectures, threaded discussions, student-led economist
presentations, and assessments. As the course develops, I may find it necessary to adjust or
revise the material. I will inform you of changes as the semester proceeds.
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Course Schedule
Date
Lesson/Assignment
1/ 16-20
1/ 21-27
Introductions
Review of Economics
Public Sector Economics
Welfare Economics
1/ 28-2/3
Market Failures
2/ 4-10
Addressing Market
Failures
2/ 11-17
Cost-Benefit Analysis
Public Choice
Expenditure Theory
Bureaucracy
Public Expenditure
Analysis
2/ 18-24
Reading, Viewing / Group Assigned Weeks
Feb 25, 2007
Taxation Theory
3/18-24
3/ 25-31
Spring Break
Taxation Practice
POLICY PAPER DUE
4/ 1-7
Federal Finance Issues
Gruber Chapters: 18, 19, 20
Notable Economist 6: Ben Bernake
Nobel Laureate 6: Ronald Coase
Gruber Chapters: 4, 21, 22, 23, 25
Notable Economist 7: Thorstein Veblen
Nobel Laureate 7: Robert Mundell
Gruber Chapter: 4
Notable Economist 8: John Kenneth Galbraith
Nobel Laureate 8: Milton Freedman
EXAM II (up through federal finance issues)
4/ 8-15
Fiscal Federalism
4/ 16-22
State and Local Taxation
and Expenditure
4/ 23-30
Economic Development
Case: Palm Valley
Budget Homework
5/6
Gruber Chapters: 11-17
Notable Economist 5: Alan Greenspan
Nobel Laureate 5: Amartya Sen
EXAM I (up through cost-benefit analysis)
2/ 25-3/17
April 7, 2007
Econ Review online, Economics Homework
Adam Smith readings online
Gruber Chapter: 1 and 2
Notable Economist 1: Paul Samuelson
Nobel Laureate 1: Friedrich von Hayek
The Commanding Heights, complete viewing or reading by
March 4th
Gruber: Chapters 5.1, 6, 7.1
Notable Economist 2: John Maynard Keynes
Nobel Laureate 2: George Akerlof
Gruber Chapters: 5.2-5.4, 7.2-7.3
Notable Economist 3: Vilfredo Pareto
Nobel Laureate 3: Kenneth Arrow
Gruber Chapters: 8, 9
Notable Economist 4: George Stigler
Nobel Laureate 4: Buchanan
Gruber: 10
Assigned Readings
Notable Economist 9: Robert Solow
Nobel Laureate 9: Paul Samuelson
Brunori: all
Assigned Readings:
Notable Economist 10: Douglass North
Nobel Laureate 10: Markowitz, Miller and Sharpe
Bradbury et al 1997
Zodrow, McGuire
Palm Valley Case
PROFILE DUE
.
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