Faculty of Business and Economics

Monash University

Undergraduate - Unit

This unit entry is for students who completed this unit in 2012 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

print version

6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

FacultyFaculty of Business and Economics
OfferedClayton First semester 2012 (Day)
Coordinator(s)Professor Ranjan Ray


The relationship between the public and private sectors is explored from the perspective of both public finance and political economy. Theories of public expenditure and revenue generation are introduced to assess the proper scope of the public sector. Additionally, theories of public choice are presented to examine the effectiveness and decision-making process of the public sector.


The learning goals associated with this unit are to:

  1. understand the basic economic concepts and principles applied in the public finance area
  2. analyse specific policy issues in the area of public expenditure and taxation from the perspectives of both traditional public finance and public choice
  3. critically evaluate contemporary public debate on topics in public finance;
  4. understand the usefulness and limitations of economic analysis in the public finance area
  5. identify both market failure and government failure and understand the causes of each.


Within semester assessment: 40%
Examination (2 hours): 60%

Chief examiner(s)

Professor Ranjan Ray

Contact hours

3 hours per week