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Module Specifications.

Current Academic Year 2024 - 2025

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Date posted: September 2024

Module Title Public Finance
Module Code EF213 (ITS) / FBA1004 (Banner)
Faculty DCU Business School School DCU Business School
Module Co-ordinatorRobert Gillanders
Module TeachersAnn Largey, Cathal Guiomard, Silvia Rocchetta
NFQ level 8 Credit Rating 5
Pre-requisite Not Available
Co-requisite Not Available
Compatibles Not Available
Incompatibles Not Available
None
Array
Description

The purpose of this module is to provide students with an understanding of the role and impact of government on the functioning of a market economy, specifically in the provision and funding of goods and services. Students will learn to apply microeconomic theory to concrete issues of social relevance. Reasons for government involvement in the market (distributional aims, provision of public goods and correction of externalities) will be discussed, as will the economic issues associated with taxation and the allocation of tax revenues. Students will attend weekly lectures, participate in class discussions and complete a self-directed project.

Learning Outcomes

1. Explain the economic reasoning for government involvement in a market economy.
2. Evaluate policy responses aimed to address problems caused by market imperfections and issues of equity.
3. Use intermediate level microeconomic models to predict the effects of monetary and fiscal policies on economic agents.
4. Assess the practical problems associated with financing and provision of public services (eg. difficulty in finding an equitable, optimal tax system, finding optimal incentive systems for public service providers).
5. Collate and synthesise information to evaluate government policies in practical situations.



Workload Full-time hours per semester
Type Hours Description
Lecture24No Description
Assignment Completion20Reading, collection of data and write-up of term essay
Independent Study36Reading in preparation for lectures
Directed learning20Questions for basis of classroom discussion
Independent Study25Exam Revision
Total Workload: 125

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

General Context
Within the course we will examine why there is a need for government involvement in provision of goods and services and how public expenditures should be financed.

Introduction
What is public finance? Size of public sector, Comparison of public expenditures between OECD countries.

Efficiency and Equity
A review of how a perfectly competitive market works to achieve efficiency, and consideration of the need for intervention to promote equity. Review of Fundamental Theorems of Welfare Economics.

Externalities, Public Goods, Private Information and Second Best Solutions
This section will expand on the need for government intervention in the economy in order to tackle inefficiencies resulting from market imperfections. These include a) consideration of externalities b) public goods c) Asymmetry in information and problems of contract setting

Tax Theory
This section will concentrate on the means of raising revenue to fund public expenditure: tax. We will consider whether optimal tax theory policy contravenes common guiding principles. Topics will include: Taxes and efficiency, tax incidence, taxes and household behaviour, corporate income taxes

Intertemporal Concerns
In this section we will examine the longer-term effects of expenditure and tax policy in the context of rational vs short-sighted agents. Topics could include: Ricardian Equivalence, Ability of government to 'buy votes', Belief in government electoral agendas

Optionally
Depending of time available one or more of the following topics in Public Finance will be covered: A. Benefit-cost analysis: measuring benefits and cost (a case approach), B. Topics in Public Finance: income distribution, pensions, education, health care, poverty, social security.

Assessment Breakdown
Continuous Assessment30% Examination Weight70%
Course Work Breakdown
TypeDescription% of totalAssessment Date
Projectn/a30%Week 9
Indicative Reading List

  • Rosen and Gayer: 0, Public Finance 10th Global Edition, ISBN-13:97800
Other Resources

27865, Other, 0, Other readings will come from selected articles in Economics journals,

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