Archived syllabus. Policies, dates, assignments, and readings reflect Spring 2025.
Course information
ECO 479-001: Public Economics University of Kentucky Spring Semester 2025 3.0 Credits MW/9:30 am – 10:45 am Eastern Time/B&E 311
Instructor Information
Professor Aaron Yelowitz Office: 225H B&E Building Email: aaron@uky.edu; if possible, please communicate with me through the Canvas email interface as it is easier for me to keep track of communication. Under normal circumstances, I will respond within 24 hours. Office hours: Monday/Wednesday, 1 pm-2:30 pm Eastern Time (also, usually available one-on-one by Zoom on other days; please schedule in advance).
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. 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?
Course Prerequisites
ECO 391, ECO 401, and ECO 402 or equivalent.
Required Materials
Jonathan Gruber, Public Finance and Public Policy, 7th edition (MacMillan Learning, 2022, ISBN:9781319281106). Many of the class lectures will be presented in PowerPoint; these slides will be made available by Canvas. Earlier editions of Gruber’s textbook are acceptable.
Student Learning Outcomes
After completing this course, the student will be able to:
- Identify the major features of many government programs in the United States.
- Understand market failure and the role of government.
- Apply data to examine how different markets operate.
- Analyze whether empirical findings from data application are consistent with theory.
- Integrate economic theory and empirical analysis to understand economic markets.
- Assess whether policy proposals will have the intended consequences.
Activities, Exams, and Grading Scheme
Course Assignments
- Tutorials (20%): Open-book/open-note/untimed, on Canvas (anticipated weekly)
- Quizzes (25%): Closed-book/closed-note/timed, on Canvas using Respondus Monitor.
- Midterm (25%): Closed-book/closed-note/timed, on Canvas using Respondus Monitor.
- Final (30%): Closed-book/closed-note/timed, on Canvas using Respondus Monitor.
- Extra credit: From time to time, extra credit may be offered. It will truly be “extra” – it won’t affect the course scale / grades and will be added only at the end of the semester after the grading scale is determined.
Summary Description of Course Assignments
Note: regardless of the points assigned to a Canvas tutorial or quiz, each tutorial will count equally towards the 20% component of the letter grade, and similarly each quiz will count equally towards the 25% component of the letter grade. For example, if tutorial #1 has 8 points (8 questions) and tutorial #2 has 4 points (4 questions), they will be rescaled so they each count equally. The aggregate totals presented on Canvas do not accurately represent the weighting scheme.
In addition, several ungraded practice quizzes using Respondus Monitor will be given prior to the very first quiz, as well as before the midterm and final (with questions like: “What is the first letter of the alphabet”, or a graphical picture), where the only intent is to make sure that your technology is working correctly. These are required but do not count towards your letter grade.
- 20%: Open-book/open-note Canvas tutorial: You will be permitted to take the tutorial as many times as you want during the window that it is open.
- 25%: At least 5 quizzes will be given during the semester. Graded quizzes on Canvas will be based on class lectures and any online videos. You will have a 24-hour window to complete the quiz, and quizzes will be announced at least one day in advance. They will be proctored using Respondus Monitor. Related to academic integrity, you may not discuss quiz questions with other students until the quiz is reviewed in class or online video.
- 25%: Midterm. The midterm will be given online on Canvas, and will be proctored using Respondus Monitor, and you will have a 24-hour window on Monday, March 10, 2025. There will be no in-person meeting on the day of the midterm.
- 30%: Final. The final will be given online on Canvas, will be proctored using Respondus Monitor and you will have a 24-hour window on Monday, May 5, 2025. There will be no in-person meeting on the day of the final.
Technology concerns: Although proctored Canvas exams with Respondus Monitor will likely work for almost all the students enrolled in ECO 479, if your situation makes this arrangement infeasible, please contact me as soon as possible so that we can make alternative arrangements. I can be reached at aaron@uky.edu.
Submission of Assignments
Any assignments will be submitted via Canvas or other online means that will be detailed later. For students with an excused absence, alternative arrangements will be made if submission cannot be met by the deadline. For students with an unexcused absence, late assignments will not be accepted.
Grading Scheme
A grading curve will be applied; historically, approximately 30% of students earn an A; 50% earn a B; and 20% earn a C or lower. Mid-term grades will be posted in myUK by the deadline established in the Academic Calendar.
Attendance Policy
Students are strongly encouraged to attend every lecture and review the assigned lecture notes in advance. Many of the readings – especially the academic readings – will be easier to understand with attendance. However, no credit will be given for attendance.
Academic Policy Statements A full list of UK academic policies is available at https://provost.uky.edu/proposals/guidancecourse-proposals/standard-academic-policy-statements (updated link). This covers Excused Absences and Acceptable Excuses, Religious Observances, Verification of Absences, Making Up Graded Work, Excused Absences for Military Duties, Unexcused Absences, Prep Days and Reading Days, Homework During Finals Week, Accommodations Due to Disability, Non-Discrimination Statement and Title IX Information, and Regular and Substantive Interactions.
Academic Offenses (Cheating, Plagiarism, and Falsification or Misuse of Academic Records) UK policies on academic offenses are available at https://provost.uky.edu/proposals/guidance-course-proposals/academic-offenses. For a thorough description of “plagiarism,” see https://ombud.uky.edu/students/what-plagiarism. For a thorough description of “cheating,” see https://ombud.uky.edu/students/what-cheating.
Resources The university offers a variety of resources available to students. Visti the Office of Student Success ( https://studentsuccess.uky.edu/get-help ) to access the full list.
Classroom Emergency Preparedness and Response
Please see the following link for information related to emergency reporting and action: https://provost.uky.edu/curriculumproposals/syllabus-information.
Course Schedule, Economics 479-001, Spring 2025
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