Time and Location: 3:30-4:50 p. m., Monday and Wednesday, Room 111 DKH , Text: Rosen and Gayer, Public Finance, tenth edition. (Note: Older editions may also be used.)
Reserve Reading: (Undergraduate library) Burman and Slemrod, Taxes in America
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.
Office:
Department of Economics
229 IGPA
1007 W. Nevada
217 244-4822
e-mail: jgiertz@.uiuc.edu
Office Hours: By appointment--please email
Daily Class Schedule: http://classes.igpa.uiuc.edu/jgiertz/econ411/Schedule411.htm
Course Outline-Rosen and Gayer: (Outline for those using old text: Rosen, 9th edition)
I.
Introduction and Review
Overview, Ch. 1 & 2. Ch. 3 (pp.
46-49 only)
Appendix (pp. 545-549)
More Background and Review, pp.
528-545 (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. 8.
IV. Expenditure Issues
Transfer Programs, Chs. 12 & 13.
Education, Ch. 7.
Social Security, Ch. 11.
Health Care, Ch. 9 & 10.
V. Principles of Taxation
Chs. 14-16.
VI. Analysis
of Major Taxes
Corporate Taxation and Business Taxation, Ch. 19.
Consumption
Taxes, Ch. 21
Property Tax, Ch. 22 (pp. 511-518). (time permitting)
VII. Deficit Finance (time permitting)
Ch.20
There will be three examinations in the course including the final exam. Each exam (including the final) will be counted equally. The exams will consist of multiple choice, essay, and problem questions. Study questions will be provided to help prepare for the exams. Plus and minus grade options will be used in the class.
The two midterm exams will be given (subject to change) in the evening on the following dates: Thursday, March 5 and Tuesday, April 21. The midterm exams will begin at 7:00 PM by 9:00 PM in room 115 DKH. The final examination (1:30-3:30 p.m., Friday, May14 in the regular classroom) will be non-comprehensive. Three regular classes will be dismissed to compensate for the extra, out of class time required for the exams.
Students enrolled for graduate credit are expected to complete a paper on a topic related to the material in the class. The details of the paper will be worked out on an individual basis with each student. The paper will be due the last day of class.