Marie m stack economics of public issues 2 equity, efficiency and their tradeoff social welfare function measure of efficiency measure of inequality. Public economics or public nance study of the role of the government in the economy government is instrumental in most aspects of economic life. Readings public economics i economics mit opencourseware. Lectures on public economics anthony barnes atkinson, joseph e. These fundamental subjects follow the recent, steady movement away from rational decisionmaking and toward more personalized approaches to tax generation and expenditure, especially in terms of the use of. Stiglitz princeton university press princeton and oxford. Mit opencourseware makes the materials used in the teaching of almost all of mits subjects available on the web, free of charge. The subjecttherefore encompasses topics as diverse as responses to market failure due to the existence of externalities and the determination of optimal social security policies. Public economics study of the role of the government in the economy government is instrumental in most aspects of economic life. This book offers an insight into what public economics says and what. Positive public economics is a required 1st step before we can complete normative public economics positive analysis is primarily empirical and normative analysis is.
Efficiency and equity lectures 1 and 2 tresch 2008. The public sectorstatistical background 12 lecture 2 household decisions, income taxation, and labour supply 19 2 1 i odrucnt iont 19 22 income taxation and labour supply 26. At its most basic level, public economics provides a framework for thinking about whether or not the government should participate in economics markets and to what extent its role should be. Positive public economics is a required 1st step before we can complete normative public economics positive analysis is primarily empirical and normative analysis is primarily theoretical positive public economics overlaps with labor economics political economy is a positive analysis of govt outcomes public choice is political economy from a. The discussions presented here offer very insightful views on the limits of tax theory analysis that cannot be found in pure research articles, and help guide students who want to carry out research of their own. To answer this question, we need some benchmark measure against which we can compare the outcome with and without government interference. On the undesirability of commodity taxation even when income taxation is not optimal. There are currently ve published volumes, each including widelyquoted chapters. With more than 2,200 courses available, ocw is delivering on the promise of open sharing of knowledge. Part i is devoted to the optimal provision of public goods, user. We are all constantly affected by the economic decisions of the government. First published in 1980, lectures on public economics still tops reading lists at many leading universities despite the fact that the book has been out of print for years. You may have submitted your article to journal of public economics pubec when this journal was still a hybrid title, publishing both subscription. This course introduces students to the economic issues surrounding the role of the.
Public economics or economics of the public sector is the study of government policy through the lens of economic efficiency and equity. This is an important condition in economics and it equates the relative price of two goods to the marginal rate of substitution mrs between them. Jem031 public economics the syllabus is under permanent construction. This new edition makes it readily available again to a new generation of students and practitioners in public economics.
In the logic of collective action 1965, economist mancur olson challenged the popular idea that, in a democracy, the majority view will prevail, and in doing so launched the modern study of public economy, sometimes referred to as public choice, a subtopic of microeconomics. Academic interest public economics is typically the end point for many other subelds of economics macro, development, labor, and corporate nance questions often. October 1 st, 2010 objectives the course covers selected advanced topics in the economics of the public sector. Part i is devoted to the optimal provision of public goods, user charges, contracting issues with private providers, and.
Introduction to graduate public economics lecture 2. Ec534 public economics, 2012, page 5 of 14 hall, r. Graduate public economics introduction and road map. Tax incidence and the welfare costs of taxation hindricks and myles, chapter 14. Modern public economics tightly integrates theory with empirical evidence to derive quantitative predictions about policy. First published in 1980, lectures on public economics still tops reading lists at many leading. Contents introduction xi preface xxvii introductory note to the 1980 edition xxix part one the analysis of policy lecture 1 introduction. Analyzing public expenditure and budgeting references. Hilary hoynes introduction uc davis, winter 20 1 20. Lectures on public economics anthony barnes atkinson. This is the second of two courses in the graduate public economics sequence at berkeley. First published in 1980, lectures on public economics still tops reading lists at many leading universities despite the fact that the book has been out of print for. This new edition makes it readily available again to a new generation of students and practitioners in public.
Contents 1 introduction and basic facts 4 ifirmsandthedecisiontoexport 12 2 intraindustry heterogeneity with fixed costs of. Public goods provide benets to a number of users simultaneously eg teaching a class i if public good can accommodate any number of users. Find materials for this course in the pages linked along the left. Areas of emphasis include tax policy, education, transportation, poverty and welfare, delivery of public services, and economic development. As in many other textbooks, musgrave and musgrave 1984 identify three main functions of the public sector. Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social welfare public economics provides a framework for thinking about whether or not the government should participate in economic markets and to what. Lectures on public economics by atkinson, anthony b. Income tax, sales taxes, local taxes, and social security. Public finance basic concepts, ties and aspects aim of this chapter to introduce to the issue of public finance.
Marie m stack economics of public issues 3 economic functions of a government depends on chosen economic system govt legitimacy in a market economy arises from market failures two goals of economic wellbeing. The public economics and political economy group gathers researchers working in this field and more specifically on the following topics. Lecture 9 distributional effect of taxation and public expenditure 216 91 taxation, spending, and redistribution 216 92 modelling the distribution of income 222. Public economics focuses on answering two types of questions 1 how do government policies a. Introduction to public economy principles of economics. The public sectorstatistical background 12 lecture 2 household decisions, income taxation, and labour supply 19 2 1 i odrucnt iont 19. Lecture notes principles of macroeconomics economics.
Public economic theory analyzes the role of the state within the economy. Economics 2535 lecture notes advanced topics in international trade. A chapter in lectures on public economics updated edition, 2015 from princeton university press. Public sector economics examines the impacts of government revenue, expenditure, and investment decisions. Public economics 11 introduction these lectures are concerned with the economics of the public sector. Whether global production efficiency is desirable depends on the existence of international. Public economics 3 11 introduction 3 1 2 role of the government 4 guide to the lectures 8 note. Public sector economics department of applied economics. Edited by philip black, estian calitz, tjaart steenekamp and franz siebrits. I in this case, given the existence of the public good at the given scale then the marginal cost of adding another user 0. Starting from theories of general equilibrium analysis, laffont considers issues of market failure, collective decisionmaking, and distributional equity. Public economics 5th edition takes a look at the economic policy challenges, and forces of democratisation and globalisation on a mediumsized, open developing country. Econ 211 singapore management university christine ho reading list textbooks main text rg harvey rosen and ted gayer public finance, 9th edition, mcgrawhill education supplementary texts gr jonathan gruber public finance and public policy, 3rd edition, worth publishers st joseph stiglitz economics of the public sector, w. Lectures on public economics, updated edition table of contents.
This classic introduction to public finance remains the best advancedlevel textbook on the subject ever written. Public economics 3 1 1 i odrucnt iont 3 12 role of the government 4 guide to the lectures 8 note. Chapter prepared for the handbook of public economics, edited by alan auerbach. The first part considers the optimal allocation of a global public good. Public economics is about the government and the economic effects of its policies. The worldwide spread of covid19, and the dramatic public policy response, has rapidly brought new economic policy issues to the fore. Public economics study of the role of the government in the. This text by one of europes leading economists covers a wide variety of public economics issues with great clarity and precision, illustrating them with a wealth of carefullychosen examples and problems. Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social welfare. Indirect taxation is superfluous under separability and taste homogeneity.
Lectures on public economics, updated edition table of. Purpose of the course public sector economics is one of the level iii elective courses offered by the department of economics. Introduction 1 hilary hoynes uc davis, winter 20 1these lecture notes are partially based on lectures developed by raj chetty and day manoli. Lectures on public economics remains the most comprehensive and deepest textbook on the subject. Should we impose a cap on the remuneration of top compensated employees of bailed out rms. The revenue required to meet these demands is mainly collected by taxes.
The public sectorstatistical background 12 lecture 2 household decisions, income taxation, and labour supply 19 21 introduction 19 22 income taxation and labour supply 26. Lecture materials in public sector economics the economics. Handbook of public economics, volume 5 1st edition. First published in 1980, lectures on public economics. Fundamentals of public economics mit press the mit. In this chapter, we will look at the economics of government policy. New evidence from time use data, journal of public economics 94, 298307. Public sector economics is one of the level iii elective courses offered by the department of economics. Therefore, the public finance measures must be analysed and examined, including how impact the private sector. Fundamentals of economics may be used in either an advanced graduatelevel course in public economics or in conjunction with a second volume forthcoming by the same author in a course in advanced microeconomics.
I to iv subject to the modifications to be made from time to time. Public economics i useful general references mit economics. Key words public finance, public sector, public revenues, public expenditures. Purchase handbook of public economics, volume 5 1st edition. The economics of public sector information 5 potential for use and reuse, and, lastly, the twosided nature of those who hold and maintain the information. This onesemester course covers i optimal labor income taxation and redistribution, labor income taxation. The definitive textbook on public financenow back in print for the first time in years this classic introduction to public finance remains the best advancedlevel textbook on the subject ever written. Enter your mobile number or email address below and well send you a link to download the free kindle app. Bozio 8 preferences aggregation and intertemporal justice t. Fundamentals of public economics mit press the mit press.