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, borrowing, and debt.
TEXT: Public Finance: A Contemporary Application of Theory to Policy (9th edition): David N. Hyman
PREREQUISITES: ECN 201 or ECN 215, ECN 205
EXAMS:
Midterm I--25% (September 29)
Midterm II--25% (October 27)
PAPER:
There will be one term paper 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 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 . 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 and my own, 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. For additional details, click here.
Helpful review: Empirical Tools of Public Finance
CLASS DISCUSSION (10%)
Each student group is responsible for leading class discussion for one portion of a class on a single topic of their choosing (see the list below). The group will begin with a 30-45 minute talk presenting background economic theory relevant to the topic at hand, along with an explanation and critique of one or more specific policy proposals. The proposals could be at either the local, state, or federal level. It does not matter if the proposal passed, failed, or has never formally been voted on in legislature. The student group will then lead an open discussion period for 15-30 minutes. Student-led classes will occur during the second half of the course, beginning November 3. Each student group should meet with me prior to their presentation.
Students are expected to come prepared to class throughout the semester, having read relavent chapters and reviewed previous material and notes.
NOTES:
Sep. 14: lecture given by Prof. Randall Holcombe in Carswell 111 Annenberg Forum at 5:30pm. Everyone is expected to attend.
Oct. 1: lecture on health reform given by Barry Clendinin (WFU grad '71) in Carswell 111 Annenberg Forum at 4:00pm. Everyone is encouraged to attend.
Oct. 27: class held in ZSR Library room 476 at 11am; exam scheduled for normal class time at 6:30pm
Nov. 24: class cancelled. Try not to be too disappointed.
PART I--THEORY
Individuals and Government (chapter 1) slides
Efficiency, Markets, and Government (chapter 2) slides
Welfare Economics (chapter 2 appendix) slides
Externalities and Government Policy
(chapter 3, Public Policy Perspective p. 449) slides
(readings on recycling to be circulated)
Public Goods (chapter 4)
slides
(readings on sports stadiums subsidies to be circulated)
Public Choice and the Political Process
(chapter 5) slides
Introduction to Government Finance (chapter 10) slides
PART II--POLICY
Topics include: Personal Income Taxation; Property and Estate Taxes; Corporate Income Taxation; Consumption and Sales Taxes; Subsidies and Income Support; Balanced Budgets and Government Debt; Health Care; Social Security; Fiscal Federalism
Group topics and date will be allocated on first-come-first-served basis, and posted here.