EC330 Index: Undergraduate Public Finance

	Public Finance Econ 330 GMU, Fall 2010 Professor Roger D. Congleton
.	Class room and time: Enterprise 274, 3:00-4:15 Tuesday-Thursday
	Office: 11 Carow Hall Phone: 993 2328 E-Mail: congleto@gmu.edu Website: rdc1.net	Office Hours: Tuesday, 1:15-2:45, Thursday 1:15-2:45 and by appointment
Suggested Text:	Syllabus
	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)
	Class Notes, available via this website	Public Finance Links

Date	(Tentative) COURSE OUTLINE	Readings
8/31	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 AH1: 1 AH2: 1
9/7	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.
9/14	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	AH1: 2E, 7.1 and 7.2 AH2:4.1 , 9.1 US Tax History
9/23	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	AH1: 2.1, 5.2 AH2: 5.1
10/5	Discussion and Review for the First Exam	Study Guide I
10/7	FIRST EXAMINATION	Paper Topics
10/12	Columbus Day Switch / No Tuesday Classes This week
10/14	Exams returned and Reviewed
10/19	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	AH1: 2.1, 2.2, 4.1, 4A, 4C AH2: 3.1, 5.1, 5.2, 5.3
10/28	The Electoral Demand for Public Goods (and Taxes): The median voter model and the demand for public services	AH1: 3.1, 3.2, 4.2 AH2: 6.1, 6.2
11/4	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
11/9	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.	AH1: 9.1 AH2: 9.3
11/11	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	AH1: 7A, 7B, 7C AH2: 9.1, 9.2 Rangel's Proposal
11/18	Applications: Social Security, [ Social Security Annual Report , (OASDI History ], Medicare Reforms [ Medicare Annual Trustiees Report cbo] Deficit Finance and the Bailouts of 2008-09	AH1: 5.1, 5B, 10.1, 10.B AH2: 8.1, 8.2, 8.3
11/25	Thanksgiving Break No Class
12/1	Review for Second Exam	Study Guide II
12/3	SECOND EXAM
12/8	Review of Second Exam / Paper Work Shop
12/10	Overview of Class
12/14	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!)	Paper Topics

Public Finance
Econ 330
GMU, Fall 2010
Professor Roger D. Congleton

Class room and time: Enterprise 274, 3:00-4:15 Tuesday-Thursday

Office:   11 Carow Hall
Phone:   993 2328
E-Mail:   congleto@gmu.edu
Website: rdc1.net

Office Hours:
Tuesday, 1:15-2:45,
Thursday 1:15-2:45
and by appointment

Suggested Text:

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)

Class Notes, available via this website

Public Finance Links

Date

(Tentative) COURSE OUTLINE

Readings

8/31

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
AH1: 1
AH2: 1

9/7

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.

9/14

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

AH1: 2E, 7.1 and 7.2
AH2:4.1 , 9.1
US Tax History

9/23

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

AH1: 2.1, 5.2
AH2: 5.1

10/5

Discussion and Review for the First Exam

Study Guide I

10/7

FIRST EXAMINATION

Paper Topics

10/12

Columbus Day Switch / No Tuesday Classes This week

10/14

Exams returned and Reviewed

10/19

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

AH1: 2.1, 2.2, 4.1, 4A, 4C
AH2: 3.1, 5.1, 5.2, 5.3

10/28

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

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

11/4

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

11/9

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.

AH1: 9.1
AH2: 9.3

11/11

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

AH1: 7A, 7B, 7C

AH2: 9.1, 9.2

Rangel's Proposal

11/18

Applications: Social Security, [ Social Security Annual Report , (OASDI History ], Medicare Reforms [ Medicare Annual Trustiees Report cbo] Deficit Finance and the Bailouts of 2008-09

AH1: 5.1, 5B, 10.1, 10.B

AH2: 8.1, 8.2, 8.3

11/25

Thanksgiving Break No Class

12/1

Review for Second Exam

Study Guide II

12/3

SECOND EXAM

12/8

Review of Second Exam / Paper Work Shop

12/10

Overview of Class

12/14

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!)

Paper Topics