Time and Location: 8:00-9:15 AM, Tuesday and Thursday, Room 62. Krannert Art Museum (lower floor)
Text: Rosen and Gayer, Public Finance, 8th Edition (Rosen 7th Edition Assignments)
Reserve Reading: (Undergraduate library) Slemrod and Bakija, Taxing Ourselves, 3rd 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
330 Wohlers
333-0120 or 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:
I. Introduction and Review
Overview, Chs. 1 & 2.
Ch. 3. (pp. 45-48 only)
Appendix (pp. 558-560)
More Background and Review, pp. 539-557 (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
Education, Ch. 7
Transfer Programs, Chs. 12-13 and 9-11.
V. Principles of Taxation
Chs. 14-16.
VI. Analysis of Major Taxes
Individual Income Tax, Chs. 17 & 18. (Slemrod and Bakija)
Corporate Taxation, Ch. 19.
Consumption and Wealth Taxes, Ch. 21 and Ch. 22 (pp. 521-528 only)
.
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 (October 1 and November 5) in 134 Temple Buell Auditorium. The midterm exams will begin at 7:00 PM and conclude by 9:00 PM.. The final examination (8:30-10:30 PM, Monday, December 15 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.