PUBLIC ECONOMICS

PREREQUISITES: MICROECONOMICS, MACROECONOMICS

OBJECTIVES

As a fundamental and compulsory course in the field of Economics,Public Economicsis the study of government policy through the lens of economic efficiency and equity. This subject encompasses a host of topics including market failures, functions of public finance, public goods and externalities, public choice, government expenditures and revenue, taxation, public pricing, national debt, national budget, intergovernmental relations and fiscal policy.

PROGRESSIVE ASSESSMENT

Coursework assignment (10%)

2-hour examination (90%)

RECOMMENDED TEXTBOOKS

1. Fan Liming, Li Qiyun and Chen Dong,Public Finance (the third edition), Higher Education Press, 2012 (Chinese)

2. Fan Liming, Li Qiyun and Chen Dong,Government Economics, Economic Science Press, 2008 (Chinese)

3. Harvey Rosen & Ted Gayer：Public Finance(8/E)，2010，McGraw-Hill Higher Education

4. David Hyman：Public Finance: a contemporary application of theory to policy，2010，South Western College

TOPICS TO BE COVERED IN THE LECTURES/ CLASS SCHEDULE

Week 1: Conspectus of This Course

Week 2: Public Finance and Functions of Public Finance

Week 3: Public Goods and Externalities

Week 4: The Principles of Public Expenditure

Week 5: The Purchases of the Government: Expenditures for Public Services, National Defenses, Culture, Science & Health and Government Investment

Week 6: Transfer Payments: Subsidization and Expenditures on Social Security

Week 7: The Scale and Structure of Fiscal Revenue

Week 8: The Basic Theory of Taxation Ⅰ

Week 9: The Basic Theory of Taxation Ⅱ

Week 10: The China’s Reform in the Tax System and Tax Administration

Week 11: Public Pricing and Charging

Week 12: National Debt

Week 13: The National Budget

Week 14: The Managerial System of the Budget

Week 15: The Fiscal Balance

Week 16: Fiscal Policy

Week 17: Examination