Archived syllabus. Policies, dates, assignments, and readings reflect Fall 2011.
Course information
Economics 479-001: Public Economics University of Kentucky Fall Semester 2011 URL: http://gatton.uky.edu/faculty/yelowitz/479/fall2011.html (historical link unavailable)
Lectures MWF, 11:00-11:50 am, B&E 206.
Relevant info on me Professor Aaron Yelowitz Office: 335W Business and Economics Building Office hours: Wednesday, 2-4 pm, and by appointment. Email: aaron@uky.edu
My background: I am an associate professor in the economics department; I have been at UK since 2001. 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.
Enrolling in this Class
If you want to enroll in this class, you need to talk to Debbie Wheeler in the economics department; she handles that.
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 the 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 401 or equivalent. Agricultural Economics majors may substitute AEC 303 for this prerequisite. Calculus will be used in this course; you cannot get through this class without it. The tests will have a math-emphasis.
Textbook / On-line class notes
Jonathan Gruber, Public Finance and Public Policy, 3rd edition (Worth Publishers, 2009, ISBN 1429219491). Many of the class lectures will be presented in PowerPoint; these slides will be made available on the class website. Earlier editions of Gruber’s textbook are acceptable substitutes.
The Internet
The web site will have links to download the PowerPoint slides and occasionally supplemental lecture notes. In addition, I will sometimes send announcements by email.
Preparing for Class
We will generally follow the order of topics in the textbook (although we will skip various sections).
The best way of preparing for the class is to read the chapter ahead of time, and come prepared with questions to ask during the lecture.
Studying for the Exams
The exams for this semester will generally be based on the textbook and class lecture. During the course of the semester, I will point out relevant questions in the back of the chapters, and will also create additional questions for you to work on. I will try to distribute these questions when we start on a new chapter in the textbook.
Grading
- The final is on Friday, December 16, 2011, at 1:00 pm. It will count for 60% of your grade. It lasts 2 hours.
- You will be given one midterm, in class, on Wednesday, October 19th. It will count for 40% of your grade. It lasts 50 minutes.
- There are no attendance requirements for this course. However, if you have an unexcused absence, or an excused absence without appropriate documentation, you will receive zero credit for any assignments that are due. You can understand more about absences at: http://www.uky.edu/Ombud/policies.php.
Grading Policy
Grades will be based on the midterm and final exam 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 test sheet must be submitted within one week of the date on which the exams are returned. All tests submitted for re-evaluation will be entirely re-graded.
University Holidays / Cancelled Classes
Class will be cancelled on Friday, September 23, 2011.
According to the university calendar, there will be no class on Monday, September 5, 2011 (Labor Day) or November 23-25, 2011 (Thanksgiving).
Course outline and readings
I. Introduction and Background
A. Why Study Public Finance
Gruber, Chapter 1
B. Theoretical Tools of Public Finance
Gruber, Chapter 2, including appendix
C. Empirical Tools of Public Finance
Gruber, Chapter 3, including appendix
II. Externalities and Public Goods
A. Externalities: Problems and Solutions
Gruber, Chapter 5
B. Externalities in Action: Environmental and Health Externalities
Gruber, Chapter 6
C. Public Goods
Gruber, Chapter 7
D. Education
Gruber, Chapter 11
III. Social Insurance and Redistribution
A. Social Insurance: The New Function of Government
Gruber, Chapter 12
B. Social Security
Gruber, Chapter 13
C. Unemployment Insurance, Disability Insurance, and Workers’ Compensation
Gruber, Chapter 14
D. Health Insurance I: Health Economics and Private Health Insurance
Gruber, Chapter 15
E. Health Insurance II: Medicare, Medicaid, and Health Care Reform
Gruber, Chapter 16
F. Income Distribution and Welfare Programs
Gruber, Chapter 17
IV. Taxation in Theory and Practice
A. Taxation in the United States and Around the World
Gruber, Chapter 18
B. Taxes on Labor Supply
Gruber, Chapter 21
C. Taxes on Savings
Gruber, Chapter 22