2024/2025
State and Economy
Type:
Mago-Lego
Delivered by:
Department of Applied Economics
When:
1, 2 module
Online hours:
60
Open to:
students of one campus
Instructors:
Natalya Rakuta
Language:
English
ECTS credits:
6
Course Syllabus
Abstract
This course offers an introduction into the public economics theory. It does not aspire to cover theories of taxation, public expenditures, regulation etc. at length and in-depth. Rather, our ambition is to give a bird's-eye view of central themes of public economics and related disciplines, and teach concepts, logic, and ideas, rather than methods of analysis, which would require an entirely different course format. Our choice of topics covered by the course reflects a trade-off between salience and centrality, on the one hand, and suitability for a brief online introductory course, on the other. The central theme of the course is the role of government as a mechanism of resource allocation which complements and augments markets. Governments are viewed as public agencies set to correct market failures. Such agencies however are prone to failures of their own, and hence markets and governments are two imperfect alternatives. We deal with government's limitations, with particular emphasis on those that have to do with informational asymmetry, limited administrative capacity, and imperfect accountability to society. Otherwise the course's main themes are economics of taxation, regulation, politics of public economics, incentives in government, and government vis-à-vis (civil) society.
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
Expected Learning Outcomes
- Analyse tax incidence and welfare loss
- Explain main functions of the government
- Explain the behavior of economic agents in political process
- Explain the role of social insurance and its types
- Know main theorem and theories of Public Choice
- Know main ways to increase efficiency in Public Sector
Course Contents
- Introduction to Public Economics
- Voting
- Rent-seeking
- Commodity taxation
- Income taxation
- Social Insurance and Welfare Programs
- Managing the Public Sector's Assets and Liabilities
- Multiple Jurisdictions
Assessment Elements
- Online course grade
- Essay
- Group presentation
- Participation
- Final examAn essay type work. The answer to the open question during 3 hours time period
Interim Assessment
- 2024/2025 2nd module0.3 * Essay + 0.25 * Final exam + 0.15 * Group presentation + 0.05 * Online course grade + 0.05 * Online course grade + 0.1 * Participation + 0.1 * Participation
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
- Lectures on public economics, Atkinson, A. B., 1980
- Public choice III, Mueller, D. C., 2007