EXAMS:
Public Finance is about governmental provision of goods and services. In this course we will consider why the government produces, what it produces, how efficient public provision is compared to private provision, and how these goods and services are paid for. In a pure market system, output is produced according to the laws of supply and demand. Does the government follow the same profit motive? If not, how does the government reach its decisions? We will explore the interaction of consumers, voters, bureaucrats, and politicians. Government revenue topics include pricing and user fees, taxation, money creation, borrowing, and debt.
TEXT: Public Finance: Theory and Practice by Michael L. Marlow (1995)
COURSE OUTLINE
EXAMS:
Midterm I--20% (September 30)
Midterm II--20% (October 30)
Final -- 25%
PAPER:
There will be one term paper (20%) on a public finance topic, 8-12 pages in length (double-spaced). To describe the topic properly, the paper must include an empirical section wherein the student analyzes collected data (no advanced statistics necessary) to explain or test a proposed relationship. Projects and data should be discussed with me after preliminary work is started. Two drafts of the completed paper are to be turned in (one without your name) and the anonymous copy will be assigned to another student for review (5%). When reviewing another paper, be sure to explain both what you like about the paper and how it can be improved (3-4 pages double-spaced). Turn in two copies of the review, one of which is anonymous. Upon receiving back the student comments, a final draft of the paper will then be due at which point a cover response (1-2 pages) is to be attached which explains what changes were and were not made and why. The paper grade will be based on both the original paper and the revised paper, emphasizing both content and effort.
CLASS
DISCUSSION:
Each student is responsible for leading class discussion (10%) for one day on a single topic of their choosing (see the list below). You will begin with a15-20 minute talk concerning the main issues involved followed by a general discussion period. Student-led classes will occur during the second half of the course.
PART
I--THEORY
Introduction (chapter 1)
Public Sector (chapter 2)
Private and Public Markets (chapter 3)
Efficiency (appendix to chapter 3)
Externalities (chapter 4)
Public Goods (chapter 5)
Voters and Policymakers (chapter 6)
Voting Models (chapter 7)
Demand and Supply of Government (chapter 8)
PART
II-APPLICATIONS
Nov. 4 (Ben and Jason): Social Security