| CODE | ECN3124 | ||||||
| TITLE | Public Sector Economics 1 | ||||||
| UM LEVEL | 03 - Years 2, 3, 4 in Modular Undergraduate Course | ||||||
| MQF LEVEL | 6 | ||||||
| ECTS CREDITS | 4 | ||||||
| DEPARTMENT | Economics | ||||||
| DESCRIPTION | The study-unit evaluates the role of the state in an economy. The course considers government’s role through an assessment of its functions by means of expenditure and revenue. The study unit also tackles the question of how market failures can be addressed and government’s role in addressing failures. How and why should the government be involved in the provision of education? What methodologies are used in the compilation of published public finance data and how should this data be analyzed and interpreted? How do markets react to taxation and what are the equity implications and the efficiency costs of taxation? How does taxation affect labour supply and savings decisions? This study-unit integrates relevant theory, policy applications and evidence. Topics to be covered include: 1. Introduction to Public Sector Economics; 2. Measuring the Budgetary Position of the Government; 3. Economic Rationales for the State: Fundamental Theorem of Welfare Economics; 4. Market Failure and Government Intervention; 5. Special Issues: Education Policy; 6. Tax Issues in Context; 7. The Equity Implications of Taxation: Tax Incidence; 8. Tax Inefficiencies and their implications for Optimal Taxation; 9. Taxes on Labour Supply and Taxes on Savings. Study-Unit Aims: This is a study-unit that combines theoretical public economics with applications using intermediate economic theory. This study-unit aims to provide: - An overview of the role of government in the economy; - A comprehensive understanding of how public finance data is compiled, analyzed and interpreted; - An insight into taxation policy, its design and administration; - A deeper understanding of taxation and how markets respond; - A good grasp of the equity implications of taxation and its efficiency costs. Learning Outcomes: 1. Knowledge and Understanding By the end of the study-unit the student will: - Be able to understand, the role of government and identify how and when government should intervene in an economy; - Have knowledge of government’s budget and its components; - Have detailed insight into how people change their behavior due to taxation; - Be able to identify the efficiency costs of taxation and its implications on equity. 2. Skills By the end of the study-unit the student will: - Have the capacity to justify or otherwise government’s role in particular situations from an economic point of view; - Be able to proficiently contribute to policy debates on various current issues related to the area of public finance; - Be able to comprehend and interpret public finance data; - Be able to apply economic theory to the area of expenditure and taxation. Main Text/s and any supplementary readings: - Gruber Jonathon, ‘Public Finance and Public Policy’, 5th edition - Connolly, S and Munro A., Economics of the Public Sector, Pearson Education Ltd - Musgrave R. A. and Musgrave P. W. ‘Public Finance in Theory and Practice’ Other supplementary readings are provided during the course. These will be continuously updated to reflect current affairs during the period of study. |
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| STUDY-UNIT TYPE | Lecture | ||||||
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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