Spring 2009

ECN 5451, section 001

Seminar in Public Finance

Dr. Dao

Office: Coleman 2871

Office Phone:581-6329

Office Hours:2:00-3:00 MW

10:50-11:30 TR

or by appointment

BACKGROUND TEXT: Dennis C. Mueller, Public Choice III, Cambridge University Press, first edition, 2003.

Course Requirements:

Midterm ( March 5, 2009 ):40 percent of final grade

Problem Sets: (10 @ 5 points each):10 percent of final grade

Comprehensive Final (May 5, 09 at 12:30 p.m. ):50 percent of final grade

CLASS ATTENDANCE:Students are expected to attend class.Three unexcused absences may affect final grade.Two late arrivals will count as one unexcused absence unless I am notified ahead of time.

NOTE:If you have a documented disability and wish to receive academic accommodations, please contact the Coordinator of the Office of Disability Services (581-6583) as soon as possible.

COURSE OUTLINE

Introduction to Public Economics

I. THE RATIONALE FOR COLLECTIVE DECISION-MAKING

Economic Efficiency and the Competitive Price System

Market Failure and the Rationale for Government Intervention

II. PUBLIC EXPENDITURE THEORY, EXTERNALITIES AND PUBLIC GOODS

The Theory of Public Goods

Externalities

Resource Allocation for Public Goods

Cost-Benefit Analysis

Transfers to Individuals and Social Insurance

III. TAXATION

The Normative Analysis of Taxation: Efficiency Aspects

The Normative Analysis of Taxation: Equity Aspects

The Incentive Effects of Taxation

Tax Incidence

The United States Tax Structure