This course examines the economic justification for the role of government in a mixed economy. The conditions under which free markets fail and the efficiency and equity of alternative methods that may be used by the public sector to correct these failures will be evaluated. Much of the course will be spent examining different government expenditure programs and taxes in terms of equity and economic efficiency.  Topics include positive and negative externalities, public goods, voting behavior and resource allocation effects, evaluation methods, and the incidence and efficiency of taxes.

Textbook and Study Guide

All reading and homework assignments will be from the following required textbook and study guide.  Reading each textbook chapter and doing all the questions in the study guide is assigned as homework prior to the date the material is discussed in class (see tentative schedule below). 

Textbook: Public Finance:  A Contemporary Application of Theory to Policy, David N. Hyman, 8e, 2005.  

Study Guide: Study Guide to Accompany Public Finance:  A Contemporary Application of Theory to Policy, David N. Hyman, 8e, 2005.

Grades:  Participation, Presentation, and Exams

Course grades will be curved and based on a combination of class participation (25 percent), an in-class presentation (25 percent), and scores on a midterm (20 percent) and comprehensive final exam (30 percent). Exams will consist of a combination of true/false, multiple choice and short-answer essay questions. 

Class presentations will consist of a 10-15 minute discussion of a current event related to the material being covered in lecture. PowerPoint is preferred for the presentation. A general outline for the presentation:

i)   briefly give the details of the government expenditure, tax, or other market interference that is the subject of your presentation;

ii)  discuss the economic justification for government's role for the expenditure, tax, or other market interference; and

iii)  discuss the equity implications of the government expenditure, tax, or other market interference.

Presentation Example

Rules and Regulations

1. No make-up exams will be given. 

2. If you are excused from the midterm, the final exam will count 50 percent.

3. If you are not excused and do not take the midterm exam, there is a 10 percent course grade penalty.

4. No "incomplete" course grades will be assigned.

5. No "extra credit" work will be assigned to anyone to improve grades.

6. Students are expected to adhere to the Honor Code.

7. These rules and regulations, grading system, and exam dates will not be changed this semester.

Course Schedule and Assignments

Copyright © 2005, J. Brad Schwartz.  All rights reserved.