PUBPOL 2040 - Economics of the Public Sector

(SBA-HE) (SBA-AG)

Fall. 4 credits. Student option grading.

Prerequisite: PUBPOL 2000.

B. Tripp.

The public sector now spends nearly two out of every five dollars generated as income in the U.S. economy. A thorough knowledge and understanding of this important sector is an essential part of training in policy analysis and management. This course provides an overview of the public sector of the U.S. economy, the major categories of public expenditures, and the main methods used to finance these expenditures. The principles of tax analysis and cost-benefit analysis are presented with a focus on the role of public policy in improving economic efficiency, promoting the goals of equity and social justice, and improving equity by altering the distribution of wealth and income.

Outcome 1: Explain and identify conditions justifying government intervention in markets, and describe the theoretical impact of possible interventions using indifference curves, budget constraints, and supply and demand functions.

Outcome 2: Learn the framework for major US government programs, including social insurance and tax policy.

Outcome 3: Apply the theoretical tool of economic analysis to evaluate the substantive impact of existing US policies.