Bachelor
2026/2027
Public Economics
Type:
Elective course (Economics)
Delivered by:
Department of Applied Economics
Where:
Faculty of Economic Sciences
When:
2 year, 3, 4 module
Open to:
students of one campus
Language:
English
ECTS credits:
6
Contact hours:
66
Course Syllabus
Abstract
This course provides a basis for the economic analysis of public policy issues. It focuses on the role of the public sector in the modern economy, its functions, management techniques, the sources of government expenditures, and the efficiency estimation of public policies. Issues related to the role of the state, development of the Welfare State, public choice, management of public assets and liabilities, modern trends in taxation policies, and fiscal federalism are also examined on the material of the developed countries and Russia as well. Public Economics attempts to understand both how the government makes decisions and what decisions it should make. It explains how the public sector interacts with the rest of the economy and why governments act in the way they do.
Learning Objectives
- To develop analytical tools and their application to key policy issues relating to the spending, taxation and financial activities of the government.
- To introduce students to the main models and analytical tools of Public Economics
- To develop student’s ability to apply theoretical knowledge to the actual economic cases
Expected Learning Outcomes
- Analyse effects of taxation on labour supply
- Analyse market failures.
- Analyse tax incidence and welfare loss
- Conduct cost-benefit analysis for government programmes
- Explain main functions of the government
- Explain the behavior of economic agents in political process
- Explain the role of social insurance and its types
- Explain the tendencies in government expenditures
- Know different approaches to social welfare
- Know main theorem and theories of Public Choice
- Know main ways to increase efficiency in Public Sector
Course Contents
- Introduction to Public Economics
- Market Failures
- Income, inequality and poverty
- Voting
- Rent-seeking
- Commodity taxation
- Income taxation
- Theories of the public sector
- Social Insurance and Welfare Programs
- Cost-Benefit Analysis
- Managing the Public Sector's Assets and Liabilities
Interim Assessment
- 2026/2027 4th module0.25 * Midterm + 0.1 * Group project 2 + 0.4 * Final Exam + 0.075 * Class Activity + 0.1 * Group project 1
Bibliography
Recommended Core Bibliography
- Economics of the public sector, Stiglitz, J. E., 2000
- Hindriks, J., & Myles, G. D. (2013). Intermediate Public Economics (Vol. Second edition). Cambridge, Massachusetts: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=564828
Recommended Additional Bibliography
- Economics of the welfare state, Barr, N., 2012
- Lectures on public economics, Atkinson, A. B., 1980
- Public choice III, Mueller, D. C., 2007