Econ 441
WVU, Fall 2019
Professor Roger D. Congleton
Phone: 304.293.7866
E-Mail: roger.congleton@mail.wvu.edu (the most reliable contact method)
Website: rdc1.net
Wed.: 2:00-3:30,
Thursday: 2:00-3:30
and by appointment
Suggested Texts:
Holcombe, R. (2005) Public Sector Economics: The
Role of Government in the American Economy. NY:
Prentice Hall.
Hillman, A. L. (2019) Public Finance and Public Policy, Responsibilities and Limitations of Government. (third edition) Cambridge: Cambridge University Press. (Either the first [AH1] or second edition [AH2] is fine. AH3 below refers to chapters in the third edition, AH2 to chapters in the second edition.)
Hillman, A. L. (2019) Public Finance and Public Policy, Responsibilities and Limitations of Government. (third edition) Cambridge: Cambridge University Press. (Either the first [AH1] or second edition [AH2] is fine. AH3 below refers to chapters in the third edition, AH2 to chapters in the second edition.)
Class Notes,
available via this
website
Introduction:
Why Study Public Economics? Growth of Government and
Taxation in the United States and OECD countries, changing
composition of, increasing centralization and regulation.
Methodology
of Public Economics: Positive and Normative
Analysis. Positive and normative analysis in
public economics: Cost-Benefit Analysis, the Pareto
principles. The rational choice approach to choice and
social science.
Review of
Economic Tools: The Net Benefit Maximizing
Model of human choice, applied to demand and
supply, consumer surplus and profit, efficiency of
competitive markets.
Principles
and Effects of Taxation: Impact of taxes on
market prices and output; deadweight loss in the long and
short run; neutral taxes and excess burden; Ramsay
taxation, progressive and proportional income taxes and
the labor-leisure tradeoff. Applications: property taxes,
excise taxes, head taxes, and income taxes. Tax
Data: Overviews (WP table of effects of Taking
Stock
of Recent Economic Policies (WSJ, Schultz et al)
AH3: 1, 8
AH2: 4.1, 4.2, and 9.1
US Tax History / Wiki
AH3: 2.1, 5.2
AH2: 2.1, 5.1
H: 4, 5
AH3: 3, 4
AH2: 3.1, 5.1, 5.2, 5.310/03
First Examination
10/10
H: 4, 5
AH3: 3, 4
AH2: 1.1, 3.1, 5.1, 5.2, 5.3
H: 7
AH2: 6.1, 6.2
Interest
Groups and Public Policy: Olson's Model of
Collective Action, Stigler's Capture model, Rent-Seeking
Losses, Bureaucracy as a Special Interest Group. Why are
some groups more influential than others?
AH3: 1.4,
2, 12, B.2
AH2: 2.1, 2.2, 2.3
AH2: 2.1, 2.2, 2.3
Public
Finance and Relationships Between Governments:
Fiscal Federalism, Decentralized Policy Making,
Intergovernmental externalities, Conditional grants,
Revenue sharing. The Tiebout Model of intergovernmental
competition: voting with one's feet, Yardstick
competition. Applications: the decentralization theorem,
subsidiarity principle, capital flight. (Pew
on
Central Gov as Source of State Revenues.)
AH3: 9.1
AH2: 9.3
11/14
The Welfare State: Notes on Social Security and
Medicare, OASDI, the lock box myth, true
distribution of tax burden varies with supply and demand,
politics of social security (and medicare) benefits--an
aging median voter. Entitlement Growth and future
taxes and/or deficits. Supplemental References and
resources: Social
Security
Annual Report , (OASDI
History, Medicare
Reforms, Medicare
Annual
Trustiees Report CBO](Feldstein
on reform), (notes on
the Demand for Social Insurance):
H17
CBO Report 2014
CBO Report 2018
Exams Returned
Forest From Trees Lecture / Paper
Workshop
H: 20, 22
AH3: Part V
AH3: Part V
AH2: 8.1, 8.2, 8.3
Research Paper
Due at Midnight