PUBLIC ECONOMICS

ECON356

Course Code: ECON356
Semester: -
Theory+Practice: 3 + 0
ECTS: 5

Course Type

Elective Course

Course Level

Bachelor's Degree

Year of Study

Semester

ECTS

Name of Lecturer(s)

Learning Outcomes

At the end of this course, the students;

Understand the logic of governmental intervention in markets and the reasons for public production of some goods and services in a free market economy.
Understand why and how the government intervenes in markets and produces goods and services.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

None

Course Description

The main objective of this course is to present an introduction into the public economics theory. The central theme of the course is government?s role in promoting economic efficiency and equality in the distribution of income and wealth. With special emphasis on the role of the government in complementing the markets in case of any market failure, among others the course also covers the history and normative theories of government intervention, public expenditure theory and the theories related with the political decision making processes in the government.

Course Contents

WEEK	TOPICS
1^st Week	Basic Concepts and Introduction to Public Economics: The economic role of government.
2^nd Week	Role and Scope of the Public Sector: Market failures, government intervention, market vs. government failure.
3^rd Week	Government Economic Activities and Size of the Public Sector: Public production, regulation, redistribution, measuring government size.
4^th Week	Welfare Economics: Efficiency Competitive markets, Pareto efficiency, welfare theorems.
5^th Week	Welfare Economics: Market Failures Imperfect competition, incomplete markets,information failures.
6^th Week	Efficiency and Equity Equity-efficiency trade-offs, income distribution, social welfare.
7^th Week	Midterm
8^th Week	Public Goods and Social Choice: Public goods, free-rider problem, social choice.
9^th Week	Public Production and Bureaucracy: Natural monopoly, public vs. private production.
10^th Week	Externalities and Environmental Policy Pigouvian taxes, regulation, market-based solutions.
11^th Week	Public Expenditure Policies Policy design, distributional effects.
12^th Week	Cost-Benefit Analysis Social cost-benefit analysis, discounting, risk.
13^th Week	Budget and Budgeting Systems Fiscal discipline, public budgeting.
14^th Week	Budget and Budgeting Systems in Türkiye.

Recommended or Required Reading

Joseph E. Stiglitz, Economics of The Public Sector, 4th ed. New
York: W.W. Norton, 2015.
Mariana Mazzucato, The Entrepreneurial State, Debunking
Public vs Private Sector Myths, London: Anthem Press, 2013

Planned Learning Activities and Teaching Methods

Lecture
Discussion

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	40
Presentation of Article	2	20
Total(%)		60
Contribution of In-term Studies to Overall Grade(%)		60
Contribution of Final Examination to Overall Grade(%)		40
Total(%)		100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Midterm exam	1	1	1
Preparation for Quiz	1	9	9
Individual or group work	14	3	42
Preparation for Final exam	1	30	30
Course hours	14	3	42
Preparation for Midterm exam	1	25	25
Laboratory (including preparation)	0	0	0
Final exam	1	1	1
Homework	0	0	0
Total Work Load			150
Total Work Load / 30 (h)			5
ECTS Credit of the Course			5

Language of Instruction

Turkish

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2
K1		X
K2	X
K3
K4
K5	X
K6		X
K7		X
K8	X	X
K9		X
K10
K11
K12
K13	X	X