KUK - LMS

Syllabus

MODULE NO / UNIT	COURSE SYLLABUS CONTENTS OF MODULE	NOTES
Course Code: M-BECOC -004 Course Name: Public Economics-I
1	The Public Economy Exchange Economy, Production Economy and Efficiency; Asymmetric Information and market Failure; The Problem of Externalities – Negotiation, Permit trading, Common property Resources, The Coase Theorem; Rent Seeking Costs and Political process. Reading List • Akerlof, G. (1970). The Market for `Lemons': Quality Uncertainty and the Market Mechanism. Quarterly Journal of Economics, 84(3), 488-500. • Ayres, I. & Levitt, Steven D. (1998). Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack. Quarterly Journal of Economics, 113(1), 43-77. • Coase, R. (1960). The Problem of Social Cost. Journal of Law and Economics, 3, 1-44. • Hillman, A. L. (2009). Public Finance and Public Policy. Cambridge University Press. • Leach, John (2004). A Course in Public Economics. Cambridge University Press . • Metcalf, G. (2009). Market-Based Policy Options to Control U.S. Greenhouse Gas Emissions. Journal of Economic Perspectives, 23(2), 5-27.
2	Public Goods Efficient Provision of Public Goods; Private provision of Pure Public Goods; Bowen Model, Lindahl Model; Samuelson Model; Nash equilibrium Approach; Clarke Mechanism, Groves- Ledyard Mechanism; Lindahl - Wicksell Mechanism; Theory of Club Goods. Reading List • Andreoni, J. (1993). An Experimental Test of the Public Goods Crowding-Out Hypothesis. American Economic Review, 83(5), 1317-1327. • Bergstrom, T., Blume, L. & Varian, H. (1986). On the Private Provision of Public Goods. Journal of Public Economics, 29, 25-49. • Clarke, E.H. (1971). Multipart Pricing of Public Goods. Public Choice, 11, Rand McNally • Foley, D.K. (1970). Lindahl’s solution and the core of an economy with public goods. Econometrica, 38(1), 66-72. • Samuelson, P. (1954). The Pure Theory of Public Expenditure. Review of Economics and Statistics, 36(4), 387-389.
3	Public Revenue-I Incentive Effects of Taxation on Labour Supply, Savings, Risk Taking and Investment; Other Distorting Effects of the Tax System; Tax Incidence – Partial and General equilibrium Analysis; Dynamic Tax Incidence. Reading List • Blundell, R. and MaCurdy, T. (1999). Labor supply: a review of alternative approaches, In Ashenfelter, O., and Card, D. (Eds.), Handbook of Labor Economics, vol. 3A, chap. 27, Elsevier. • Boadway, R. (1984). Public Sector Economics. Cambridge Winthrop Publishers. • Harberger, A. (1962). The Incidence of the Corporation Income Tax. Journal of Political Economy, 70, 215-240. • Ihori, Toshihiro (2016). Principles of Public Finance. Springer. • Jha, Raghbendra (1998). Modern Public Economics. Routledge.
4	Public Revenue-II Normative Analysis of Taxation – Income v/s Excise Tax; Optimal Commodity Tax- The Ramsey Rule, The Corlett and Hague Rule; Optimal Income Tax; Excess Burden of Tax and its Measurement; Tax Evasion and the Black Economy; Corporation tax and its Effects on Corporate Decisions. Reading List • Alm, James (2012). Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies.International Tax and Public Finance, 19(1), 54–77. • Auerbach, A. (2002).Taxation and Corporate Financial Policy, In Auerbach, A. and Feldstein, M. (eds), Handbook of Public Economics, vol. 3, chap. 19, Elsevier. • Boadway, R. (1984). Public Sector Economics. Cambridge Winthrop Publishers. • Cullis, John & Jones, Philip (2009). Public Finance and Public Choice: Analytical Perspectives. Oxford University Press. • Diamond, P. (1975). A Many-Person Ramsey Tax Rule.Journal of Public Economics, 4(4), 335-342. • Mirrlees J. (1971). An Exploration in the Theory of Optimum Income Taxation.Review of Economic Studies, 38(2), 175-208.