ECO3023S
- Public Sector Economics
Course Information
Course Objectives
The purpose of this course is to give students a firm grounding in public
sector economics. Students will be presented with alternative theories on the
necessity and functioning of the public sector. At the end of this course,
students should be able to think critically and to contribute to debates on
public sector issues.
Course Information
The course is (in principle) divided into two parts, Part I and Part II. We
will closely follow the prescribed textbook (see below) in terms of sequencing
of the topics.
Part I of the course consists of the following topics:
Benchmark model of the economy: positive and normative approaches; public
goods and externalities; imperfect competition; equity and social welfare;
public choice theory; public expenditure and growth; and cost-benefit analysis.
Part II consists of the following topics:
Introduction to taxation and tax equity; tax efficiency and tax reform;
income taxation; taxation of wealth; taxes on goods and services; poverty and
inequality in Southern Africa: fiscal and social policy issues; fiscal policy;
and public debt and debt management.
Student Responsibilities
It is the responsibility of each student enrolled for the course to be
acquainted with all course information: on notice boards, in handouts, and by
lecture announcements. Queries pertaining to marks must be dealt with
conclusively prior to the final examination.
Lectures
Lecture Venue A100, Monday to Friday, Period 7 (as of Monday 21st of July
2008)
Text Book
Public Economics for South African Students By Black, Calitz,
Steenkamp and associates (third edition)
Other reading: General Equilibrium, Economic Efficiency and Social Welfare
(pp. 431-442).
You may also get additional readings as we go along.
Class Assessment
Test 1 on 28 August 2008 20% Venue; TBA
Test 2 on 13 October 2008 25% Venue; TBA
Exam 55%
There will be no mandatory tutorials but worksheets will be provided and
there will be occasional workshops on Fridays. You are strongly urged to work
through these worksheets/problems. Observe that the Final Exam only counts for
55%!
Duly Performed Requirements
Only those students who have earned a Duly Performed (DP) certificate are
permitted to write the final examination. DP certificates will be refused to
students who do not write two class tests, unless such absence from a test is
supported either by a medical certificate or on compassionate grounds acceptable
to the Head of Department and subject to the paragraph below.
A student who misses one or more of the two tests, for whatever reason, will
be required to write a make up test/s.
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