EC330 Index: Undergraduate Public Finance

	Public Finance Econ 330 GMU, Fall, 2007 Professor Roger D. Congleton
.	Innovation Hall 205: 7:20-10:00
Required Text:	Syllabus
	Hillman, A. L. (2003) Public Finance and Public Policy, Responsibilities and Limitations of Government. Cambridge: Cambridge University Press	SNOW NEWS
	Class Notes, available via this website

Date	COURSE OUTLINE	Readings
8/30	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 nomative analysis: the Pareto principles, Cost-Benefit Analysis, Rational choice as an application of cost-benefit analysis	US Statistical Abstract World Bank Statistics AH: 1
9/06	Review of Economic Tools: The Net Benefit maximizing model and the competitive theory of demand and supply, consumer surplus and profit. Introduction to Tax Analysis.
9/13	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	AH: 2E, 7.1 and 7.2 US Tax History
9/20	Principles of Expenditure Analysis: Impacts of subsides on market equilibria, deadwieght 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	AH: 2.1, 5.2
9/27	Discussion and Review for the First Exam	Study Guide I
10/04	FIRST EXAMINATION	Paper Topics
10/11	Public Goods and Externalities: Public and Private Goods, the free rider problem; Pareto optimal supply of public goods, Samuelsonian,and Lindalh Taxes; Externalities and Market Failures, Pigovian taxes. Applications: national defense, clean air and water, highways, welfare	AH: 2.1, 2.2, 4.1, 4A, 4C
10/18	The Electoral Demand for Public Goods (and Taxes): The median voter model and the demand for public services	AH: 3.1, 3.2, 4.2
10/25	Interest Groups and Public Policy: Bureaucracy as a Special Interest Group; Economic and Ideological Special Interests and Rent-Seeking Losses	AH: 6.1, 6.2, 6.3, 6C
11/1	Public Finance and Relationships Between Governments: Voting with Your Feet (the Tiebout Model), Decentralization, Intergovernmental Externalities and Economies of Scale (an optimal federal system). Applications: decentralization, fiscal federalism, capital flight.	AH: 9.1
11/8	Applications: Tax Reform: Current and Future feature of the US Personal Income Tax Code / Recent Tax Reforms (CBO analysis), Analsysis of Recent Propoals for Tax Reforms (US Treasury White Paper, 2002, O'Neill) History of Taxation in the US , Tax Museum and History	AH: 7A, 7B, 7C Rangel's Proposal
11/15	Applications: Social Security, Social Security Annual Report Medicare Reforms? Medicare Annual Report	AH: 5.1, 5B, 10.1, 10.B (OASDI History)
11/22	No Class / Thanksgiving Break	Paper Topics
11/29	Overview of Class: Discussion and Review for Second Exam	Study Guide II
12/06	SECOND EXAM

12/13	6-8 Page paper due via e-mail (or at the beginning of exam period) on an applied public finance topic (Be sure to use our tools!)

Public Finance
Econ 330
GMU, Fall, 2007

Professor Roger D. Congleton

Innovation Hall 205: 7:20-10:00

Required Text:

Hillman, A. L. (2003) Public Finance and Public Policy, Responsibilities and Limitations of Government. Cambridge: Cambridge University Press

SNOW NEWS

Class Notes, available via this website

Date

COURSE OUTLINE

Readings

8/30

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 nomative analysis: the Pareto principles, Cost-Benefit Analysis, Rational choice as an application of cost-benefit analysis

US Statistical Abstract

World Bank Statistics
AH: 1

9/06

Review of Economic Tools: The Net Benefit maximizing model and the competitive theory of demand and supply, consumer surplus and profit. Introduction to Tax Analysis.

9/13

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

AH: 2E, 7.1 and 7.2
US Tax History

9/20

Principles of Expenditure Analysis: Impacts of subsides on market equilibria, deadwieght 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

AH: 2.1, 5.2

9/27

Discussion and Review for the First Exam

Study Guide I

10/04

FIRST EXAMINATION

Paper Topics

10/11

Public Goods and Externalities: Public and Private Goods, the free rider problem; Pareto optimal supply of public goods, Samuelsonian,and Lindalh Taxes; Externalities and Market Failures, Pigovian taxes. Applications: national defense, clean air and water, highways, welfare

AH: 2.1, 2.2, 4.1, 4A, 4C

10/18

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

AH: 3.1, 3.2, 4.2

10/25

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

AH: 6.1, 6.2, 6.3, 6C

11/1

Public Finance and Relationships Between Governments: Voting with Your Feet (the Tiebout Model), Decentralization, Intergovernmental Externalities and Economies of Scale (an optimal federal system). Applications: decentralization, fiscal federalism, capital flight.

AH: 9.1

11/8

Applications: Tax Reform: Current and Future feature of the US Personal Income Tax Code / Recent Tax Reforms (CBO analysis), Analsysis of Recent Propoals for Tax Reforms (US Treasury White Paper, 2002, O'Neill) History of Taxation in the US , Tax Museum and History

AH: 7A, 7B, 7C
Rangel's Proposal

11/15

Applications: Social Security, Social Security Annual Report Medicare Reforms? Medicare Annual Report

AH: 5.1, 5B, 10.1, 10.B

(OASDI History)

11/22

No Class / Thanksgiving Break

Paper Topics

11/29

Overview of Class: Discussion and Review for Second Exam

Study Guide II

12/06

SECOND EXAM

12/13

6-8 Page paper due via e-mail (or at the beginning of exam period) on an applied public finance topic (Be sure to use our tools!)