Archived syllabus. Policies, dates, assignments, and readings reflect Fall 2001. Obsolete contact details and inactive course-site URLs have been omitted.
Course information
- Institution: University of Kentucky
- Instructor: Professor Aaron Yelowitz
- Term: Fall 2001
Class meetings
MWF, 10:00-10:50 am, Business and Economics Building 205. Attendance is mandatory.
Instructor
Professor Aaron Yelowitz
My background : I am an associate professor in the economics department. This is my first year at UK. Before I joined UK, I was an assistant professor in the economics department at UCLA, from 1994 to 2001. I received my Ph.D. in economics from MIT in 1994, and my B.A. from UC Santa Barbara in 1990. My research interests have focused on low-income households - especially concerning the housing and health insurance decisions that these groups are faced with. In some parts of the course, particularly on the U.S. welfare system, I will incorporate some of my previous research. I taught a course similar to Economics 479 at UCLA; if you want to see how I structured a typical public economics course there, you can go to:
Historical library access credentials in the preserved source have been removed from this public version.
Enrollment
If you want to enroll in this class, you need to talk to Debbie Wheeler in the economics department; she handles that.
Course website
Course description
This course examines the role of federal, state and local governments in the economy, both from a theoretical perspective and with analyses of U.S. institutions in particular. Both the taxation side and the expenditure side of the government budget will be analyzed. Questions to be answered include: Why should the government intervene in the working of private markets or goods or services? What kind of interventions are most desirable? What efficiency consequences result from government regulation or taxation? How would individuals or firms change their behavior in response to government policies?
Prerequisites
Economics 201 and 202. Calculus will be used in this course, you cannot get through this class without it. The quizzes will have a math-emphasis.
Textbook and online class notes
Harvey Rosen, Public Finance, 5th edition (Irwin/McGraw Hill, 1998, ISBN 025617329X). If you can locate a copy, the 4th edition of Rosen's textbook (ISBN: 0256160198) will cover all the topics of this class. In fact, since very little has changed between the fourth edition and fifth edition, I would encourage you get the fourth edition if you can find it and save money.
I will put the class lectures on the web site. You will be able to download these notes and the figures in Acrobat (.pdf) format. The on-line figures are in color, but you should be able to interpret them easily even in black and white. There are a lot of figures -- unlike the textbook, which has one graph for one concept with a lot of details, the lecture note graphs go through the concept in many steps. Feel free to download the notes, or get a copy of the notes from a classmate. The notes will generally be posted at least three days prior to lecture -- thus, you will have a good idea about what we will discuss on each day. You will be expected to review the class notes before coming to class. In general, I will use transparencies in class - these will contain similar content to the lecture notes.
Course website
The web site will have links to download the lecture notes. In addition, I will try to have an "announcements" page and "discussion board" page. Please note that we will moderate the discussion board, and delete inappropriate topics or threads.
Preparing for class
You should download and read the lecture notes ahead of time. During class, we will spend considerable time on problem solving -- at which time you will be asked to go through questions that are representative of quiz questions. If you read through the notes ahead of time, this should be valuable preparation for the exam.
Studying for the quizzes
The best way to study for the quizzes is to review the numerous worked-out examples during class, and to review past midterms and finals. The old exams may be found on the internet. There are solutions for some of the questions.
Grading
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The final is on Tuesday, December 11, 2001 at 1 pm. The final will be cumulative. It will count for 25% of your grade.
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You will be given six quizzes; the best five count for your grade. They will be given on Friday. Each quiz counts for 15% of your grade, and altogether the best five count for 75% of your grade.
Quiz dates
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Quiz #1: 9/7/2001
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Quiz #2: 9/21/2001
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Quiz #3: 10/12/2001
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Quiz #4: 10/26/2001
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Quiz #5: 11/9/2001
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Quiz #6: 11/30/2001
The quizzes will be based on the lectures, and to a lesser extent, the textbook readings. A good guide are the old midterms or finals - in fact some questions might come directly from these old questions! The lecture and reading will not always cover the same material -- you are responsible for the material in the lectures and all the readings. This is especially true of the section called "Social policy and expenditure programs for the poor," where I will discuss material that is not in the book. Please check to be sure that you can take all six quizzes (or at least five of the six if you are feeling very confident): there will be no alternative dates for the quizzes.
Grading policy
Grades will be based on quizzes and the final only. Procedure for re-evaluation of disputed exam scores: Requests must be submitted in writing with an explanation of the error the student believes has been made. Written requests and quiz sheet must be submitted within one week of the date on which the exams are returned. All quizzes submitted for re-evaluation will be entirely regraded. The curve depends on my assessment of class performance. Historically, the median grade in the class has been on the B border -- roughly half the students earn a grade of B or better, and half earn a grade of C or worse.
University holidays
According to the university calendar, there will be no class on September 3, October 5, and November 23.
Economics 479 Course Outline, Fall 2001
I. Introduction and Tools of Public Finance
A. Introduction to public finance
Rosen, Chapter 1, and appendix (pp. 507-527)
B. Tools of normative analysis
Rosen, chapter 3 including appendix (skip pp. 40-44)
II. Analysis of Public Expenditure
A. Theory of public goods
Rosen, chapter 4
B. Externalities
Rosen, chapter 5
C. Social policy and expenditure programs for the poor
Rosen, chapters 7 and 8
D. Social security and Unemployment Insurance
Rosen, chapter 9
E. Health care
Rosen, chapter 10
III. A Framework for Tax Analysis
A. Taxation and income distribution
Rosen, chapter 12 (except pp. 271-279)
B. Taxation and efficiency
Rosen, chapter 13 (including Appendix A and B)
C. Efficient and equitable taxation
Rosen, chapter 14
IV. The United States Revenue System
A. The personal income tax
Rosen, chapter 15
B. Personal taxation and behavior
Rosen, chapter 16