Module Code - Title:
EC4408
-
PUBLIC FINANCE
Year Last Offered:
2025/6
Hours Per Week:
Grading Type:
N
Prerequisite Modules:
EC4101
EC4102
EC4004
Rationale and Purpose of the Module:
This course covers the theory and practice of public finance. It examines the theoretical rationale for government intervention in modern increasingly globalised economies. More specifically it examines the theory and practice of the allocative, stabilisation and re-distributive roles of government. This involves analysis of theory and practice in relation taxation and expenditure decisions.
Syllabus:
1. Pareto Optimality, General Equilibrium, Social Welfare Functions,
2. Allocative Role of Government - Market Failures: Public Goods, Externalities, Natural Monopolies,
3. Cost Benefit Analysis,
4. Taxation: Incidence and Partial Equilibrium, Taxes on Labour, Taxation and the incentive to work.
5. The Welfare State: Tax and Social Welfare Systems, Fiscal Measures to Reduce Poverty and Inequality.
6. Economics of Regulation.
Learning Outcomes:
Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)
Derive the necessary conditions for an efficient allocation of resources in a competitive economy.
Critique the usefulness of the concept of Pareto efficiency as a guide for policy makers.
Distinguish between the various forms of market failures and demonstrate responses to these failures.
Explain the efficiency effects of government intervention through commodity taxation.
Explain the impact of labour taxes on the decision to work and related empirical findings.
Describe the principles of cost benefit analysis;
Build a general equilibrium model and prove the welfare theorems;
Graphically illustrate different market failures;
Apply cost-benefit analysis to public investment decisions.
Affective (Attitudes and Values)
Understand the rationale for government intervention in modern economies.
Express an informed opinion about topics such as economic perspectives on the decsion to provide labour.
Appreciate the efficiency/equity trade-offs involved in most public finance decisions made by policymakers.
Psychomotor (Physical Skills)
N/A
How the Module will be Taught and what will be the Learning Experiences of the Students:
The module will be delivered by a series of lectures and tutorials. Students will have online access to lecture slides, readings and other content around the lecture. Students will be provided with readings before attending weekly tutorials. Tutorials time will be devoted to discussing and debating the readings and other lecture material lecture material. This focus in tutorials requires students to articulate their knowledge about the role of government in modern society and the impact of taxation and expenditure measures
Research Findings Incorporated in to the Syllabus (If Relevant):
Prime Texts:
Stiglitz, J.E. and Rosengard, J.K. (2015)
Economics of the Public Sector (4th ed.)
, W.W. Norton
Other Relevant Texts:
Hyman, D. N. (2021)
Public Finance: A Contemporary Application of Theory to Policy (12th ed.)
, Cengage
Gruber, J. (2019)
Public Finance and Public Policy (6th ed.)
, Macmillan
De Grauwe, P. (2022)
Economics of Monetary Union (14th ed.)
, Oxford University Press
Programme(s) in which this Module is Offered:
BBBUSTUFA - BUSINESS STUDIES
BBBSFRUFA - FRENCH
BBBSGEUFA - GERMAN
BBBSJAUFA - JAPANESE
BAECSOUFA - Economics and Sociology
BSECMSUFA - Economics and Mathematical Sciences
HDBEFLTFA - Business and English as a Foreign Language (Pre Ma
Semester(s) Module is Offered:
Spring
Module Leader:
Eoin.Reeves@ul.ie