Public Economics

Bachelor 2021/2022

Type: Elective course (World Economy)

Area of studies: Economics

Delivered by: Department of Applied Economics

Where: Faculty of World Economy and International Affairs

When: 4 year, 3 module

Mode of studies: offline

Open to: students of all HSE University campuses

Instructors: Natalya Rakuta

Language: English

ECTS credits: 4

Contact hours: 44

Full Syllabus

Abstract

This course provides a basis for the economic analysis of public policy issues. It focuses on the role of public sector in the economy, its functions, management techniques, taxation, and the efficiency assessment. The main parts of the course are devoted to the key elements of public finance: taxation and spending. The course also examines issues related to the role of the state, public choice, management of public assets and liabilities, and fiscal federalism. It develops an analytical framework that facilitates the evaluation of public policy. One of the aims of the course is to address theoretical concepts using instruments of economic analysis. The second one is to take into account the specifics of the world economy.

Learning Objectives

To develop analytical tools and their application to key policy issues relating to the spending, taxation and financial activities of the government.
To introduce students to the main models and analytical tools of Public Economics
To develop student’s ability to apply theoretical knowledge to the actual economic cases

Expected Learning Outcomes

Analyse effects of taxation on labour supply
Analyse functions of the government at different levels
Analyse market failures.
Analyse tax incidence and welfare loss
Conduct cost-benefit analysis for government programmes
Explain main functions of the government
Explain the behavior of economic agents in political process
Explain the role of social insurance and its types
Explain the tendencies in government expenditures
Know different approaches to social welfare
Know main theorem and theories of Public Choice
Know main ways to increase efficiency in Public Sector

Course Contents

Market Failures
Income, inequality and poverty
Voting
Rent-seeking
Commodity taxation
Income taxation
Theories of the public sector
Social Insurance and Welfare Programs
Cost-Benefit Analysis
Managing the Public Sector's Assets and Liabilities
Multiple Jurisdictions
Introduction to Public Economics

Assessment Elements

Midterm
Final exam
The final exam might be held in an online format
Group presentation 1
Group presentation 2
Essay 1
Essay 2
Class participation
Midterm 1
Midterm 2
Final exam
The final exam will be held in a distant format
Group presentation 1
Group presentation 2
Essay 1
Essay 2
Class participation

Interim Assessment

2021/2022 3rd module
0.05 * Essay 2 + 0.05 * Group presentation 1 + 0.4 * Final exam + 0.05 * Essay 1 + 0.1 * Class participation + 0.3 * Midterm + 0.05 * Group presentation 2

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

Arrow, K. J., & Lind, R. C. (1970). Uncertainty and the Evaluation of Public Investment Decisions. American Economic Review, 60(3), 364–378. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=4510669
Economics of the welfare state, Barr, N., 2012

Authors

RAKUTA NATALYA VLADIMIROVNA

Course Syllabus