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SYLLABUSEC 310 Public Finance Spring 2005 |
Location: Merrill 254
Instructor: Chris Westley
Office: Merrill 112A
Office hours: Tuesday and Thursday,
E-mail:
I encourage students to use e-mail to contact me.
Internet: http://www.jsu.edu/depart/ccba/cwestley
Prerequisites: EC221, EC222. An ability to use simple graphs and a thorough knowledge of supply and demand diagrams will be assumed.
Course Description and Objectives:
Public Finance is a study of the role and impact of government on the functioning of a free enterprise economic system. The theory, rationale, and impact of
government spending, taxing, regulation, and indebtedness will be examined. Specifically, the rationale for the existence of government will be analyzed. The economic impact, fairness, efficiency of income, sales, and property taxes will be discussed. Some attention may be given to specific topics such as Social Security, Federalism, Budgeting, and the National Debt.
Textbook: Hyman, Public Finance
: A Contemporary Application of Theory to Policy with Economic
Applications, 8th ed. (New York: South-Western, 2004) (ISBN:
0324259700) Students are encouraged to purchase older editions of this book on
the Internet.
Miller, Benjamin, and North, The Economics of Public Issues, (13th ed.) (ISBN: 0321118731)
Other readings: Supplemental readings will be distributed in class. It is expected that once the final class roll
is determined, one hour of each class will be devoted to lecture (based on the
textbook), and the remaining 30 minutes will be devoted to seminar-like
discussions of readings from The Economics of Public Issues and other handouts.
Grading: Option 1: There will be one
midterm exam worth 100 points, one presentation grade worth 100 points, a final
exam worth 100 points, and a participation grade worth 20 points. Each student will be expected to lead a class
discussion on a minimum of two readings, which will be the basis for his or her
presentation grade. Students are
required to read all the articles and be prepared to discuss them on their
assigned day, whether or not they are assigned to present them. The midterm and the final exam will cover
material from both the lecture and the assigned articles. The final grade for students choosing this
option is based on a total of 320 points.
Option 2: Same as above, with the addition of a term paper worth 50
points. The final grade for students
choosing this option is based on a total of 370 points.
Periodic, unannounced quizzes may be given to assess your ability to comprehend readings from outside the required text. Students earning 90 – 100 percent will earn an A, 80 – 89 percent a B, 70-79 percent a C, 60-69 percent a D, and 0-59 percent an F.
Grade Appeals: I handle grade appeals in only one fashion. Should you be dissatisfied with your grade on any work, do the following:
1. Write a short description of why you believe you should have received a higher grade. Simply asking for more points (e.g., “I need a C so my GPA doesn’t drop”) is insufficient. If your statement concerns the fairness of the grade, then you must convince me that you were treated unfairly.
2. Hand in the test or assignment in question along with your written statement no later than the next class period after it was returned to you.
You should not infer that following this process will guarantee a higher grade.
Attendance: Attendance
is not mandatory, but is strongly encouraged, as the material is cumulative in
nature. Missing a class is especially harmful to your grade when the class
meets once a week. Other required
readings will be posted to the web site and will be announced in class. Test questions will be drawn from class notes
and readings, so no one should rely entirely upon a single source. If you miss
class, it is your responsibility to get the notes from another student; I do
not give out my notes.
Honesty Policy: It shouldn’t need to be stated that cheating will not be tolerated. Cheating is dishonest and diminishes the value of a JSU degree to your classmates and all those who have gone before you. Jacksonville State University expects students to pursue their academic work with honesty and integrity. The Academic Honesty Policy of the University, which is listed in the JSU Student Handbook, will be followed in this course. Any violation is grounds for an “F” in this course.
Miscellaneous: Disability
Accommodations Statement: Any individual
who qualifies for reasonable accommodations under the Americans with
Disabilities Act or Section 504 of the Rehabilitation Act of 1973 should
contact the instructor immediately.
Any student who
receives failing grades during this course is urged to discuss this with the
professor.
Tests and calculators: Sharing calculators is strictly forbidden during tests because answers can be passed too easily.
Calendar: January 11 First day for this class
January 18 Last day for adding and dropping courses; last day for registering
February22 Midterm Exam
March 21-25 Spring Break
April 9 Optional Papers Due
April 14 Last day for this class
April 21 Final exam, 10:00 – 12:00
Lectures:
COURSE OUTLINE
(Subject to change with notification in class)
* Supplemental, not required reading.
I. Introduction to Public Finance
Hyman, Ch 1
* Friedman, Milton, Capitalism and Freedom, Introduction, ch. 1,2.
II. Market Failure: Public Goods and Externalities
Hyman, Ch 2, 3, 4
* Coase, Ronald, “The Problem of
Social Cost,” Journal of Law and Economics, Oct 1960, 1-44.
This article can be accessed online at <
http://www.jsu.edu/depart/ccba/cwestley/coase1.pdf >.
III. Public Choice
Hyman, Ch 5
Gwartney and Stroup, “The Public
Choice Revolution” available online at
< http://www.jsu.edu/depart/ccba/cwestley/pcrev2.html >.
IV. Principles of Expenditure Analysis
Hyman, Ch 6
V. An Examination of Expenditure Programs and Income
Redistribution
Hyman, Ch 7, 8, 9
* Aaron, Henry J. “Six Welfare Questions Still Searching for Answers,” Brookings Review, 3, Fall
1984, 12-17. (Available at library reserve desk.)
* Martin Feldstein,
“The Missing Piece in Policy Analysis: Social Security Reform,” Ely Lecture,
American Economics Association Meeting, January 1996. In American Economic
Review, May 1996,
pp. 1-14. Article available from < http://www.jsu.edu/depart/ccba/cwestley/feldstein.pdf
>.
VI. Principles of Tax Analysis
Hyman, Ch 10, 11, 12, 13
VII. The Personal Income Tax
Hyman, Ch 14
* Bosworth, Barry & Gary Burtless, “Effects of Tax Reform on Labor Supply, Investment, and
Saving,” Journal of Economic Perspectives, 6, Winter
1992, 3-26. Article available from
< http://www.jsu.edu/depart/ccba/cwestley/bosworth.pdf >.
* Browning, Edgar K. & Jacquelene M. Browning, “Why Not a True Flat Rate Tax?” Cato Journal, 5,
Fall 1985, 629-650.
VIII. The Corporate Income Tax
Hyman, Ch 15
IX. Other Taxes: Consumption, Sales, Wealth, Estate
Hyman, Ch 16, 17
* Rothbard, Murray N. “The Consumption Tax: A Critique” Review
of Austrian Economics,
7, No. 2, 1994, pp. 75-90. Article available from
< http://www.jsu.edu/depart/ccba/cwestley/mnr.tax1.pdf >.
Any changes in class policy will be at the discretion of the instructor.