Public Economics

Release Date: 2017-09-21

Course Name	Public Economics					Course Number
Course Semester	1		Course Time				Credit
Course Type	Obligatory Courses
Institute	Public Management Institute			Applicable Major	MPA
Assessment method	□Examination □ Test
Advanced courses	Economics
Teacher	Zhuang Dachang Zhang Wei Zhang Qinglin
Teaching Objectives
The objective of this course is to introduce you to (i) the concepts of market equilibrium and efficiency, (ii) the departures from the efficiency of the market, (iii) the political economy of voting and rent-seeking, (iv) the main public sector programs, (v) the financing of government intervention, especially through taxation and deficit financing, and (vi) fiscal federalism and fiscal competition. After taking this course, you should be able to explain and analyze the main government interventions in the economy.
Teaching Contents
This course examines the key issues related to what is typically referred to as public economics or public finance. We will show that the role of government is largely due to market failures and equity considerations. While market failures and equity considerations provide the rational for government interventions, the actual interventions are determined and influenced by voting and rent-seeking. Governments also need to raise money, mostly via taxation, to finance their interventions. Finally, given that many modern governments are divided into various levels/jurisdictions, the course also covers the basics of fiscal federalism and fiscal competition. Reflecting the objectives and contents of this course, this course is structured into nine parts. Part I provides an introduction to pubic economics. Part II analyzes resource allocation and government functions; Part III covers the theory of Public goods; departures from the efficiency of the market due to public goods, externalities, and asymmetric information. Part IV covers the two main aspects of the political economy: voting and rent-seeking. While Part V examines national budget; the various aspects and implications of taxation and debt financing. Part VI covers the theory and practice of public expenditure; Part VII analyzes the theory and practice of public income. Part VIII analyzes the public economy and the national economy adjustment, and the last part provides local public economy. l
Outline Designer		Zhuang Dachang Zhang Wei Zhang Qinglin			Date			2015.9.10