UCSD, Economics 151
Spring 2006
Professor Nora Gordon
Office: Economics 328
Email: please send
all email via WebCT
Office hours: Thursdays
3:00-4:00
ECONOMICS OF THE PUBLIC SECTOR:
EXPENDITURE
Tues/Thurs 9:30-10:50,
Center Hall 113
This course examines the role of government expenditure in
the economy. We will study the theory of
externalities and public goods, which inform when government should intervene
in the economy, as well as considering actual policy applications of these
interventions. We will explore political
economy explanations of how decisions about government expenditures are made in
practice, and how cost-benefit analysis suggests decisions should be made. The section on fiscal federalism focuses on how
best to divide tasks among federal, state, and local governments. Finally, we conclude with a section on
education which brings together the themes of the course through a policy
example.
PREREQUISITES:
Econ 100A or Econ 170A.
READINGS:
The textbook for this course is Public Finance and Public Policy, first edition, by Jonathan Gruber
(Worth Publishers, 2005). The textbook
is available at the UCSD bookstore and is on reserve for this class at Geisel Library. You
are responsible for all assigned readings, even if they are not discussed in
class. The textbook has a companion
website with additional materials, such as self-quizzing, that you may find
useful. The website is: http://bcs.worthpublishers.com/gruber. It requires you to register and choose a
password.
COURSE REQUIREMENTS:
There will be three problem sets, two midterm exams, and a
cumulative final exam. The course grade
will be determined as follows:
5% Problem set 1
(due at 9:30 Apr. 20)
5% Problem set 2
(due at 9:30 May 11)
5% Problem set 3
(due at 9:30 June 6)
35% Midterm exam (the
higher score of the two midterms, Apr. 25 and May 18, will be used)
50% Final exam (June
15)
Problem sets are due at the beginning of class on
their due dates. They will be available
on WebCT at least one week before they are due. The problem sets will be graded 0, 1, or 2,
and solutions will be posted on WebCT immediately
after they are due. Late problem sets
will not be accepted. You are encouraged
to work on problem sets in groups, but each student must turn in his or her own
handwritten assignment, and must list all names of collaborators on each
assignment.
The two midterm exams will be given in class on Tuesday,
April 25 and Thursday, May 18. No
make-up or early midterms will be given.
The lower of the two grades will be dropped. If you miss both midterms without a
documented medical or legal excuse for
both dates, you will have zero for 35% of your grade. The cumulative
final exam will be held Thursday, June 15, from 8:00-11:00 a.m.
TEACHING ASSISTANTS
(office hours listed on WebCT class calendar):
Yi Zhang, y9zhang@ucsd.edu
Ben Gilbert, btgilber@ucsd.edu
ECONOMICS 151
COURSE OUTLINE
Week 1: Introduction to public economics
(Gruber, Ch. 1)
Theoretical
tools of public economics (Gruber, Ch. 2)
Week 2: Empirical
tools of public economics (Gruber, Ch. 3)
Begin Externalities: theory (Gruber, Ch. 5)
Week 3: Continue Externalities: theory (Gruber, Ch. 5)
Externalities: policy examples (Gruber, Ch. 6)
Week 4: 1st
midterm exam in class Tuesday April
25
Begin Public goods
(Gruber, Ch. 7)
Week 5: Continue Public goods (Gruber, Ch. 7)
Week 6: Cost-benefit
analysis (Gruber, Ch. 8)
Begin Political economy and social
choice (Gruber, Ch. 9)
Week 7: Continue Political economy and social
choice (Gruber, Ch. 9)
2nd
midterm exam in class Thursday May 18
Week 8: Fiscal
federalism (Gruber, Ch. 10)
Week 9: Education
(Gruber, Ch. 11)
Week 10: Catch
up on remaining topics
In-class review on June 8 for final exam.
The final exam will cover all course material (including
that covered on the midterm).