EC441 Index: Undergraduate Public Economics and Finance

	Public Economics Econ 441 WVU, Fall 2016 Professor Roger D. Congleton
.	Class room and time: B&E 240 4:00-5:15 Tuesday -Thursday
	Office: 405 B&E Phone: 304.293.7866 E-Mail: roger.congleton@mail.wvu.edu (the most reliable contact method) Website: rdc1.net	Office Hours: Wed.: 2:00-3:30, Thursday: 2:00-3:30 and by appointment
Suggested Texts:	Syllabus
	Holcombe, R. (2005) Public Sector Economics: The Role of Government in the American Economy. NY: Prentice Hall. Hillman, A. L. (2009/3) Public Finance and Public Policy, Responsibilities and Limitations of Government. (second edition) Cambridge: Cambridge University Press. (Either the first [AH1] or second edition [AH2] is fine. AH1 below refers to chapters in the first edition, AH2 to chapters in the second edition.)
	Class Notes, available via this website	Public Finance Links

Date	(Tentative) COURSE OUTLINE	Readings
8/18	Introduction: Overview of fical policy in the United States and OECD countries: growth of tax and expenditures, composition of, increasing centralization Positive and Normative Analysis: Positive and normative analysis: the Pareto principles, Cost-Benefit Analysis, Rational choice as an application of cost-benefit analysis	US Statistical Abstract World Bank Statistics H: 1, 2 / AH1: 1 AH2: 1 Deficits (Fred) Size AEI
8/23	Review of Economic Tools: The Net Benefit Maximizing Model of human choice, and the competitive theory of demand and supply, consumer surplus and profit. Introduction to Tax Analysis.
9/1	Principles of Tax Analysis: 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 Bush Taxcut Expirations, Taking Stock of Recent Economic Policies (WSJ, Schultz et al)	H: 10, 11, 12, 13 AH1: 2E, 7.1 and 7.2 AH2:4.1 , 9.1 US Tax History / Wiki
9/15	Principles of Expenditure Analysis: Impacts of subsides on market equilibria, deadweight losses in the long and short run, conditional marginal and lump sum subsides. Applications: farm subsidies, food stamps, rent subsidies, public education, and unemployment insurance. Data from the Statistical Abstract of the United States	H: 5, 8 AH1: 2.1, 5.2 AH2: 5.1
9/22	Externality Problems and Solutions. Externalities and Market Failures, Coasian Contracts, Pigovian taxes and subsidies. Applications: air and water pollution, public amenities.	H: 4, 5 AH1: 2.1-2, 4.1, 4A-C AH2: 3.1, 5.1, 5.2, 5.3
10/4	Discussion and Review for the First Exam	Study Guide I
10/6	First Examination	Paper Topics
10/11	Exams returned and Reviewed
10/13	Public Goods Problems and Solutions: Public and Private Goods, the free rider problem; Pareto optimal supply of public goods, Samuelsonian and Lindalh Taxes; Applications: national defense, highways, national parks.	H: 4, 5 AH1: 2.1-2, 4.1, 4A-C AH2: 3.1, 5.1, 5.2, 5.3
10/25	The Electoral Demand for Public Goods (and Taxes): The median voter model and the demand for public services.	H: 7 AH1: 3.1, 3.2, 4.2 AH2: 6.1, 6.2
11/1	Interest Groups and Public Policy: Bureaucracy as a Special Interest Group; Economic and Ideological Special Interests and Rent-Seeking Losses	AH1: 6.1, 6.2, 6.3, 6C AH2: 2.1, 2.2, 2.3
11/3	Public Finance and Relationships Between Governments: Voting with Your Feet (the Tiebout Model), Yardstick Competition, Decentralization, Intergovernmental Externalities and Economies of Scale (an optimal federal system). Applications: decentralization, fiscal federalism, capital flight.(Pew on Central Gov as Source of State Revenues.)	H: 24 AH1: 9.1 AH2: 9.3
	REMINDER TO GET PAPERS UNDERWAY	Paper Topics
11/8	Applications: The Welfare State: Notes on Social Security, [ Social Security Annual Report , (OASDI History ], Medicare Reforms [ Medicare Annual Trustiees Report CBO] the Demand for Social Insurance: Entitlement Growth and the Baby Boomer. (Feldstein on reform) Some Survey Evidence of Support for Reform	H 20 , AH2: 8 AH1: 5.2 RJ Samuelson
11/10	Applications: Deficits: Debt Finance as Intertemporal Taxation (Revenues, Expenditures, Deficits etc.) Recent Fiscal History, the Politics of Debt, Intergenerational Burden Shifting, Entitlement Deficits and the Baby Boomers [Data: deficits(1), deficits(2), debt(1), debt(2)-public, debt(3)-foreign, debt(4)-fed, GAO deficit forecast, GAO debt forecast]	CBO Report AH2:4.3 H17
11/15	Tax Reform: Notes on US Taxation, Co-Chairs Proposal to Balance the Budget / Ryan Tax Reforms (House 2016), HRC Proposal, History of Taxation in the US , Tax Museum and History	H: 20, 22 / AH1: 5.1, 5B, 10.1, 10.B AH2: 8.1, 8.2, 8.3
11/17	Forest From Trees Lecture / Paper Workshop
11/19-27	Thanksgiving Break No Class
11/29	Review for Second Exam	Study Guide II
12/1	Second Examination
12/6	Exams Returned / Overview of Class

12/12	Research Paper Due at Midnight

Public Economics
Econ 441
WVU, Fall 2016
Professor Roger D. Congleton

Class room and time: B&E 240 4:00-5:15 Tuesday -Thursday

Office:   405 B&E
Phone:   304.293.7866
E-Mail:   roger.congleton@mail.wvu.edu (the most reliable contact method)
Website: rdc1.net

Office Hours:
Wed.: 2:00-3:30,
Thursday: 2:00-3:30
and by appointment

Suggested Texts:

Syllabus

Holcombe, R. (2005) Public Sector Economics: The Role of Government in the American Economy. NY: Prentice Hall.
Hillman, A. L. (2009/3) Public Finance and Public Policy, Responsibilities and Limitations of Government. (second edition) Cambridge: Cambridge University Press. (Either the first [AH1] or second edition [AH2] is fine. AH1 below refers to chapters in the first edition, AH2 to chapters in the second edition.)

Class Notes, available via this website

Public Finance Links

Date

(Tentative) COURSE OUTLINE

Readings

8/18

Introduction: Overview of fical policy in the United States and OECD countries: growth of tax and expenditures, composition of, increasing centralization

Positive and Normative Analysis: Positive and normative analysis: the Pareto principles, Cost-Benefit Analysis, Rational choice as an application of cost-benefit analysis

US Statistical Abstract

World Bank Statistics
H: 1, 2 / AH1: 1
AH2: 1
Deficits (Fred) Size AEI

8/23

Review of Economic Tools: The Net Benefit Maximizing Model of human choice, and the competitive theory of demand and supply, consumer surplus and profit. Introduction to Tax Analysis.

9/1

Principles of Tax Analysis: 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 Bush Taxcut Expirations, Taking Stock of Recent Economic Policies (WSJ, Schultz et al)

H: 10, 11, 12, 13
AH1: 2E, 7.1 and 7.2
AH2:4.1 , 9.1
US Tax History / Wiki

9/15

Principles of Expenditure Analysis: Impacts of subsides on market equilibria, deadweight losses in the long and short run, conditional marginal and lump sum subsides. Applications: farm subsidies, food stamps, rent subsidies, public education, and unemployment insurance. Data from the Statistical Abstract of the United States

H: 5, 8
AH1: 2.1, 5.2
AH2: 5.1

9/22

Externality Problems and Solutions. Externalities and Market Failures, Coasian Contracts, Pigovian taxes and subsidies. Applications: air and water pollution, public amenities.

H: 4, 5

AH1: 2.1-2, 4.1, 4A-C
AH2: 3.1, 5.1, 5.2, 5.3

10/4

Discussion and Review for the First Exam

Study Guide I

10/6

First Examination

Paper Topics

10/11

Exams returned and Reviewed

10/13

Public Goods Problems and Solutions: Public and Private Goods, the free rider problem; Pareto optimal supply of public goods, Samuelsonian and Lindalh Taxes; Applications: national defense, highways, national parks.

H: 4, 5

AH1: 2.1-2, 4.1, 4A-C
AH2: 3.1, 5.1, 5.2, 5.3

10/25

The Electoral Demand for Public Goods (and Taxes): The median voter model and the demand for public services.

H: 7

AH1: 3.1, 3.2, 4.2
AH2: 6.1, 6.2

11/1

Interest Groups and Public Policy: Bureaucracy as a Special Interest Group; Economic and Ideological Special Interests and Rent-Seeking Losses

AH1: 6.1, 6.2, 6.3, 6C
AH2: 2.1, 2.2, 2.3

11/3

Public Finance and Relationships Between Governments: Voting with Your Feet (the Tiebout Model), Yardstick Competition, Decentralization, Intergovernmental Externalities and Economies of Scale (an optimal federal system). Applications: decentralization, fiscal federalism, capital flight.(Pew on Central Gov as Source of State Revenues.)

H: 24
AH1: 9.1
AH2: 9.3

REMINDER TO GET PAPERS UNDERWAY

Paper Topics

11/8

Applications: The Welfare State: Notes on Social Security, [ Social Security Annual Report , (OASDI History ], Medicare Reforms [ Medicare Annual Trustiees Report CBO] the Demand for Social Insurance: Entitlement Growth and the Baby Boomer. (Feldstein on reform) Some Survey Evidence of Support for Reform

H 20 , AH2: 8
AH1: 5.2
RJ Samuelson

11/10

Applications: Deficits: Debt Finance as Intertemporal Taxation (Revenues, Expenditures, Deficits etc.) Recent Fiscal History, the Politics of Debt, Intergenerational Burden Shifting, Entitlement Deficits and the Baby Boomers [Data: deficits(1), deficits(2), debt(1), debt(2)-public, debt(3)-foreign, debt(4)-fed, GAO deficit forecast, GAO debt forecast]

CBO Report
AH2:4.3
H17

11/15

Tax Reform: Notes on US Taxation, Co-Chairs Proposal to Balance the Budget / Ryan Tax Reforms (House 2016), HRC Proposal, History of Taxation in the US , Tax Museum and History

H: 20, 22 / AH1: 5.1, 5B, 10.1, 10.B

AH2: 8.1, 8.2, 8.3

11/17

Forest From Trees Lecture / Paper Workshop

11/19-27

Thanksgiving Break No Class

11/29

Review for Second Exam

Study Guide II

12/1

Second Examination

12/6

Exams Returned / Overview of Class

12/12

Research Paper Due at Midnight