Time and Location: 8:00-9:15 a. m., Tuesday and Thursday, Room 61 Krannert Art Museum (KAM)
Text: Rosen and Gayer, Public Finance, ninth edition.
Reserve Reading: (Undergraduate library) Slemrod and Bakija, Taxing Ourselves, 4th edition
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: 3:30-4:45 Monday and Wednesday, other times by appointment
Daily Class Schedule: http://classes.igpa.uiuc.edu/jgiertz/econ411/Schedule411.htm
Course Outline-Rosen and Gayer: (Outline for those using old text: Rosen, 8th edition)
I. Introduction and Review
Overview, Ch. 1 & 2. Ch. 3 (pp. 46-49 only)
Appendix (pp. 556-558)
More Background and Review, pp. 537-555 (review as needed)
II. Market Failure
Public Goods, Ch. 4
Externalities, Ch. 5.
III. Decisionmaking in the Public Sector
Public Choie, 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
Individual Income Tax, Ch, 17&18. (Slemrod and Bakija)
Corporate Taxation and Business Taxation, Ch. 19.
Consumption Taxes, Ch. 21
Property Tax, Ch 22 (pp. 519-526).
.
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 in the evening on the following approximate dates: October 6 and November 16. The midterm exams will begin at 7:00 PM in 141 Wohlers and conclude by 9:00 PM. The final examination (8:30-10:30 AM, Monday, December 13 in the regular classroom) will be non-comprehensive. Three 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.