PUBLIC SECTOR ECONOMICS

ECONOMICS 411

Assignments for Rosen, 7th Edition

Instructor: J. Fred Giertz , Professor of Economics

Catalogue Description: Public Sector Economics   (Credit: 2 to 4 hours.)

Economic analysis of government tax and expenditure policies; topics include public good and externality theory, public choice theory, income distribution, cost-benefit analysis, principles of taxation, tax incidence, economic effects and optimal structures of major taxes, and taxation in developing economies. 3 undergraduate hours. 2 or 4 graduate hours. Prerequisite: ECON 302 or consent of instructor; consent of instructor required for student with credit in ECON 211.

Text: Rosen , Public Finance, 7th Edition

Course Website: http://classes.igpa.uiuc.edu/jgiertz/econ411/econ411.htm

Course Outline

I.          Introduction and Review

            Overview, Chs. 1 & 2.

            Ch. 3. (pp. 46-50 only)

            Appendix (pp. 563-565)         

            Background and Review, and pp. 542-563 (review as needed)

II.         Market Failure

            Public Goods, Ch 4.

            Externalities, Ch. 5.

III.       Decisionmaking in the Public Sector

            Public Choice, Ch. 6.

            Cost Benefit Analysis, Ch. 11.

 IV.      Expenditure Issues

            Transfer Programs, Chs. 7-10

V.        Principles of Taxation

            Chs. 12-14.

VI.       Analysis of Major Taxes

            Individual Income Tax, Chs. 15 & 16. (Slemrod)

            Corporate Taxation, Ch. 17.

            Consumption and Wealth Taxes, Ch. 19 and Ch. 20 (pp. 521-530 only).