ECG9142

Public sector economics

6 points · 3 hours per week · Second semester · Gippsland · Prerequisites: ECG9102 Introduction to macroeconomic theory and policy; ECG9120 Introduction to microeconomic theory and policy

Objectives On completion of this subject students will have: gained a broad knowledge of the rationale for public sector economic activities and the criteria by which such activities can be evaluated; developed techniques of analysis appropriate to non-market-based decision-making processes; gained an understanding of the major issues in public finance and the evaluation of expenditure programs; the efficiency of the taxation system, including the need for taxation reform; and the key issues in commonwealth/state financial relations; enhanced their research skills and their capacity for independent study.

Synopsis Topics included in this subject are the rationale for government involvement in a market economy; provision of collective goods, public goods and merit goods; problems of market failure; public expenditure evaluation, including public choice theory and consideration of political decision making; the economics of taxation; and the problems of public finance on a federal system of government.

Assessment Major essay of approximately 4000 words: 40% · 3-hour examination: 60%

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