Spring 2009

ECN 5451, section 001 Dr. Dao

Seminar in Public Finance 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

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