ECONOMICS OF THE PUBLIC SECTOR
ECON 4211

FALL 2008

Anna Rubinchik
Assistant Professor
Office location: Econ 121
Office hours: Monday and Wednesday 9:25-10:55 a.m. or by appointment
Tel: 303-735-0220
e-mail: Anna.Rubinchik@colorado.edu

Announcements: No lecture on Friday, September 5: use the class time to prepare your group project.

Course description.
What is a government? What do governments do and why?
We will study the way governments manage resources. Economic principles will guide us in understanding why governments exist and what economic activities they should undertake. These are normative questions. 'What is the effect actual government policies' is a positive question, which we will address in turn. Understanding and analyzing the way governments work is our primary objective.

Academic Requirements
The course is based on Econ 3070 and Econ 3080. Masterhood of the material covered in the pre-requisites is essential for passing the course. Students are required to review their calculus tools to be able to solve homework assignments and exams.  An ideal answer to a written question (in a HW or an exam) should contain a concise verbal explanation of the argument, a calculation to support the argument (either an algebraic or a numerical one) and, if applicable, a graphical illustration. 

Attendance
Attendance is required. Students who miss more than six classes (for any reason) shall not receive a passing grade.

Schedule
All exams are given as scheduled. Students who miss an exam shall not receive a passing grade. There are no make-up exams.
Homework assignments have to be turned in before or on the due date before the commencement of the lecture. Late submissions receive zero credit.

Additional Accommodations
If you qualify for accommodations because of a disability, please submit to me a letter from Disability Services in a timely manner so that your needs may be addressed. Disability Services determines accommodations based on
documented disabilities. Contact: 303-492-8671, Willard 322, and
http://www.Colorado.EDU/disabilityservices

On the Honor Code
All students of the University of Colorado at Boulder are responsible for knowing and adhering to the academic integrity policy of this institution. Violations of this policy may include: cheating, plagiarism, aid of academic dishonesty, fabrication, lying, bribery, and threatening behavior. All incidents of academic misconduct shall be reported to the Honor Code Council and those students who are found to be in violation of the academic integrity policy will be subject to both academic sanctions from the faculty member involved and non-academic sanctions given by the Honor Code Council (including but not limited to university probation, suspension, or expulsion). Please refer to www.colorado.edu/honorcode to view the specific guidelines. If you have any questions related to this policy, please contact the Honor Code Council at honor@colorado.edu

Homework Assignments

Sample midterm
Sample final
and some solutions

Texts

Required texts.  

1. Jonathan Gruber Public Finance and Public Policy. Worth Publishers,  2005. 

2.  Robert Nozick Anarchy, State and Utopia. NY: Basic Books, 1974.

3. John Rawls A Theory of Justice, Cambridge, Massachusetts: The Belknap Press of Harvard University Press, 1971.

  Connect to the textbook website for additional material including quizzes, slides, and more.
 

Suggested Readings.

1. Ken Binmore Game Theory and the Social Contract II. Just Playing Cambridge, Massachusetts: The MIT Press, 1998.

2. John Harsanyi "Cardinal Welfare, Individualistic Ethics and Interpersonal Comparisons of Utility", Journal of Political Economy, Aug. 1955, 63(4), 309-321.

Grading

Homework assignments 30%
Group project 10%
Class participation 10%
Midterm exam 20%
Final exam 30%
 

Group Projects

There are four group projects

The project includes preparation of an in-class presentation and 1-2 page written summary. Each group should cover the following aspects of the topic:

1. Justification for government intervention

2. History and impact of spending on the economy

3. Current legislation and recent reforms

Students are encouraged to form study groups and discuss homework assignments, but they should write and submit their own (original) work.
As for the exams, any form of collaboration is prohibited.

Course outline

Note. The last column refers to the chapters of the required textbook.

Part 1. INTRODUCTION AND THE TOOLS

MIDTERM EXAM  is on Friday, Oct 17 at the regular class time.

Part 2. PUBLIC EXPENDITURE

Part 3. TAXATION

Part 4. FEDERALISM AND POLITICAL ECONOMY

FINAL EXAM is on