Экономика общественного сектора
- The main aim of the course is to develop analytical tools and demonstrate their application to key policy issues relating to the spending, taxation and financial activities of the government.
- use main theoretical concepts and models
- be able to analyse the influence of taxation and public spending on the economy
- discuss different questions, related to the public sector, and solve problems
- Introduction to Public EconomicsIntroduction. Public Economics. Subject and methods. Government. Historical development. Measurements. Revenues and expenditures. Functions of the Public sector. The minimal state. Market failure. Redistribution.
- Market FailureThe first and the second fundamental theorems of welfare economics. Pareto efficiency. Source of market failure: competition failure, incomplete markets, information failure, externalities, public goods. The theory of externalities. Coase theorem. Pigouvian taxation. The theory of public goods. Club goods and local public goods. Efficiency conditions for public goods. Mechanism design. Private provision of public goods. Second-best principle. Imperfect competition and government regulation. Welfare loss. Asymmetric information and government solutions.
- VotingPublic mechanisms for allocating resources: problems of eliciting preferences and reconciling differing views. Voting. Majority voting: the median voter theory and the voting paradox. Arrow’s Impossibility Theorem.
- Rent-seekingSpecial interest groups. Rent-seeking behaviour. Controlling rent-seeking. Theory of bureaucracy. “Principal - agent” problem. Government failure.
- Income, inequality and povertyPareto efficiency versus alternative criteria. Equity and efficiency. Social welfare functions. Alternative theories of the role of the state. Redistribution and its effects. Inequality and poverty. The role of social insurance. Health care. Retirement pensions: funded and “pay-as-you-go” state pensions. Efficiency: effects on savings and retirement decisions. Approaches to income support. Welfare programs, targeting and incentives. Integrating taxes and benefits.
- Commodity taxationTypes of taxes. The five desirable characteristics of a tax system. Tax incidence in competitive and monopolised markets. DWL and price elasticity. Equivalent taxes. Achieving tax neutrality. Effects of globalisation. Optimal commodity taxation: the Ramsey rule
- Income taxationTaxes and labour supply: taxes and the individual budget constraint; income and substitution effects; non-linearities due to progressive taxation. Taxation of capital. Taxes and savings. Distributional considerations. Modelling tax evasion. Policies to reduce tax evasion.
- Theories of the public sector. Efficiency issuesThe size of public expenditures. Wagner’s law, Baumol’s law, a political model, budget-setting, etc. Public provision versus public procurement. Efficiency of public expenditures. Cost-benefit analysis.
- Multiple JurisdictionsFiscal federalism. Arguments for multi-level government. The division of responsibilities. Principles of fiscal federalism: club theory and local public goods, Tiebout hypothesis. Production versus finance. The incidence applied to local public finance. Fiscal competition: problems of multi-jurisdictional taxation; income distribution; inter-governmental transfers.
- Interim assessment (2 module)0.5 * final exam + 0.2 * home assignments + 0.3 * midterm test
- Hindrics, J. Intermediate Public Economics / Jean Hindriks, Gareth D. Myles. – 2nd ed. – Massachusetts: The MIT Press, 2013. – 980 p. – Текст: электронный // DB ProQuest Ebook Central (ebrary) [сайт]. - URL: https://ebookcentral.proquest.com/lib/hselibrary-ebooks/reader.action?docID=3339608&query=Public+Economics
- Mueller, D. C. (2003). Public Choice III. Cambridge: Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=120731