Economics 216	TTh 9:30-10:50, Morgan 201
Public Finance	Office: Morgan 213, Ext. 2417
Professor Barb Burnell	Office Hours: T2:30-4, W1-3
Fall 2004	or by appointment

Text

David Hyman, Public Finance: A Contemporary Application of Theory to Policy,

8^th edition

Course Description and Objective

This course analyzes the public sector of the economy, with the purpose of understanding the rationale for government activity, how the scope and dimensions of the public sector

are determined, and the effects such activity has on the private sector of the economy. Many of the issues we consider in the course, and the ways in which they are analyzed, are greatly affected by value judgments and ideological positions. Therefore, the questions we ask do not always have a single objective "right" answer, but the course will at least provide a sound framework for analyzing government activity, and for understanding the sources of disagreement among public finance economists and policy makers. The course material is divided into the following sections: the theory of public goods and collective action; the theory and policy of taxation, and the relationship among federal, state and local governments.

Class Attendance and Participation

It is expected that you will attend all classes and will have completed the reading assignments before class. Class lectures and discussions are intended to complement and clarify, rather than rehash, the reading material, and we will regularly use course material to understand current policy debates. The class will be much more interesting and productive if everyone participates in informed discussion.

Resources

During the course of the semester, we will make use of several on-line resources.

The end of each chapter in your text lists several websites that are relevant to public finance, and we will use several of these, as well as others appropriate to specific topics. Your text also states learning objectives at the beginning of each chapter and important concepts at the end; pay attention to these, as they will help to focus your reading of the material.

We will also be using the Blackboard course management program in this class. By the beginning of the second week of class, all students are expected to register for this. Blackboard will be used to post course announcements, all assignments and class outlines and handouts, and will also be used to submit some of your assignments (see below).

Exams

There will be two hour exams and a comprehensive final exam. The exams consist of essay questions and problems requiring short to moderate length answers that apply the concepts learned in class. The dates of the exams are noted on the reading list and are not subject to change.

Other Assignments

There is also a series of short papers required in the course. The papers will involve a more in-depth analysis of an issue or problem we have discussed in class, based on additional outside reading and films that will be viewed outside of class. The specific assignments will be made 1-2 weeks before each paper is due. More information on the paper assignments will be forthcoming shortly.

We will also be using a Blackboard discussion board in class. These assignments will ask to respond to a short news article or editorial related to our current class discussion that I will post on Blackboard on Sundays. Thoughtful, clearly written responses that relate the article to class material will be due by 4PM on Wednesday. We will use your responses as the basis for subsequent class discussion.

Course Grade

Your grade will be based on your performance on the exams and assignments. Each hour exam is worth 20% of the grade, each paper and the discussion board are worth 10%, and the final exam is worth 20%. In borderline cases, decisions will be made on the basis of class participation. If you are taking the course S/NC, a grade of C is required to receive an S. A quality point will be deducted from paper grades for each calendar day the paper is late.

Academic Integrity

It is expected that all students are familiar with the code and will abide by it. Discussion of class material and assignments is certainly encouraged; however, outright collusion on exams and papers is clearly not allowed. Evidence of such collusion constitutes potential for failure in the course. Academic integrity, in my view, also implies that you have respect for other members of the class. This means that you get to class on time--doing otherwise is disruptive and unfair to me and to other students.

	Reading List
Week of:	Reading:	Topic:
30 August	Chapters 1 & 2	Introduction to the course:
		Why government?
6 September	Chapter 3	Externalities
13 September	Chapter 4	Public Goods
20 September	Chapter 5	Public Goods and Public Choice
		Paper 1 due Thursday, 23 September
27 September	Chapter 5	Public Choice and the Political Process
		Exam 1 Thursday, 30 September
4 October	Chapters 10 & 11	Effects of Taxation on Individual Behavior
		Defining Tax Bases
11 October	Chapters 11 & 13	Efficiency & Equity in Taxation
		Personal Income Taxation
18 October	Fall Break
	Chapter 13,14	Personal Income Taxation
25 October	Chapter 15	Corporate Income Taxation
1 November	Chapter 16	State and Local Revenue Sources—Consumption and Property Taxes
		Paper 2 due Thursday, 4 November
8 November	Chapter 18	Fiscal Federalism
15 November	Chapter 18	Issues in State & Local Public Finance
22 November	Thanksgiving Break	Exam 2 Tuesday, 23 November
29 November	Chapter 7	Income Distribution: Theory & Policy
		Paper 3 due Thursday, 2 December
6 December	Chapters 8,9 (as time permits)	Social Insurance and Health Care
		Final Exam Thursday, 16 December, 7 PM