Archived syllabus. Policies, dates, assignments, and readings reflect Spring 2016.
Course information
Economics 479-001: Public Economics
University of Kentucky
Spring Semester 2016
Lectures
TR, 12:30-1:45 pm, B&E 399
Relevant info on me
Professor Aaron Yelowitz
Office: 223B Business & Economics Building
Office hours: Tuesdays & Thursdays, from 11:00-12:00, 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 get on the wait-list. The room capacity greatly limits the ability for me to allow additional students into the course.
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 is required. Agricultural Economics majors may substitute AEC 303 for this prerequisite. Calculus will be used in this course. The tests will have a math-emphasis.
Textbook / On-line class notes
Jonathan Gruber, Public Finance and Public Policy, 4th edition (Worth Publishers, 2012, ISBN 1429278455). Many of the class lectures will be presented in PowerPoint; these slides will be made available by email. Earlier editions of Gruber’s textbook are acceptable substitutes, and in fact encouraged. The lectures closely follow the textbook, so you would certainly benefit by purchasing a copy.
Communication with Students
I will email relevant course materials to you, including PowerPoint slides, problem sets, and occasionally supplemental lecture notes. In addition, I will sometimes send announcements by email. Please make sure to check your email for my announcements.
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. Please note that at the end of many of the Powerpoint slides are embedded Youtube videos from Khan Academy, and often a number of review of questions. These are valuable in understanding the material, but we will often not go over these during class time.
Studying for the Exams
The exams for this semester will generally be based on the textbook, class lecture, the powerpoints, and practice problems. 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. Please note that I will distribute old quizzes, midterms, and finals, and direct you towards relevant questions. Sometimes I will provide a solution key, other times not. If I don’t, it is because I have not produced one, so please don’t ask!
Grading
- The FINAL is on Thursday, May 5, 2016, at 1:00 PM. It will count for 50% of your grade. It lasts 120 minutes. It will be in this room. A review session will be conducted on April 28.
- You will be given one MIDTERM, in class, on Tuesday, March 8, 2016. It will count for 35% of your grade. It lasts 75 minutes. It will be in this room. A review session will be conducted on March 3, and the exam will be passed back on March 10.
- At various times during the semester, unannounced POP QUIZZES will be given. These quizzes are worth 15% of your grade, and each quiz will take 15 minutes of class time. There will be five quizzes in total, each worth 3 points. They will generally be given at the beginning of class, so do not be late. These quizzes serve as valuable preparation for the midterm and final, and also ensure that you are keeping up with the course material.
- At the discretion of the instructor, there may be extra credit assignments. Such assignments will be communicated in class, with specifics.
Absences
It is important you show up for class, especially since you will not know if a pop quiz will be given. If you are absent, you will receive zero credit for any assignment unless the absence is excused. You must provide satisfactory documentation for any absence; such documentation will be verified. A “Tier 2” or “Tier 3” document provided by UHS is appropriate verification for an excused absence for illness; such a doctor’s visit (and verification) should fall within 24 hours of the absence. Excused absences are for serious illness, illness or death of family member, university related trips, major religious holidays or other circumstances that the instructor finds to be reasonable cause for nonattendance. You can understand more about absences at: http://www.uky.edu/Ombud/policies.php. If you have any questions on whether an absence will be excused, please contact me as soon as possible. Any anticipated absences should be communicated, in writing (via email) as soon as they are known. Please note that many absences are unexcused, even if you think they are for a “good” reason! For example, scheduling job interviews during class time does not count as an excused absence.
Grading Policy
Grades will be based on the midterm exam, final exam, pop quizzes (and possibly extra credit) 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
According to the university calendar, there will be no class on March 15, 2016 or March 17, 2016 due to Spring Vacation. In addition, class will be cancelled on April 5, 2016.
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