Class: MWR 2:30pm –
3:20pm, Cornett A121
Prof: Elisabeth Gugl Office
Hours:
BEC 384
Wednesday
3:30 – 5:00pm
OBJECTIVES
This course provides a general introduction to the economics
of government expenditures and taxation.
We will consider the role of government in the economy and use economic
analysis to predict and verify the effect of government intervention on the
behavior of individuals, households and firms. We will discuss the implications of policy for efficiency
and equity. Throughout the course,
relevant Canadian and international public policy will be discussed.
Lecture Notes
Students
are advised to complete relevant text readings before the lecture. The following is a rough schedule of
the course. We may deviate from this
schedule. I also indicate the related chapters in the recommended textbook.
Note that the chapters may sometimes cover more or less than what we cover in
class. Examinations are based on material covered in class.
Introduction:
The Role of Government in the Economy Chapter 1 in
textbook
Information
about the Federal Budget 2012
Information
about the Provincial Budget 2012
A.
Sen. 1985. ÒThe Moral Standing of the MarketÓ Social
Philosophy and Policy. 2(2), 1-19.
J.
Ferris and S. Winer. (2007) ÒJust How Much Bigger is Government in Canada?
A Comparative Analysis of the Size and Structure of the Public Sectors in
Canada and the United States, 1929-2004.Ó Canadian
Public Policy, 33(2), 1-34.
An
Economic Analysis of Democracy Chapter
8 in textbook
Plurality Rule under scrutiny.
To read Martin OsborneÕs article click
here.
ÒThe Oscar goes toÓ article on voting for best picture click
here
Analysis of Public Expenditures
Public
Goods Chapter
4 in textbook
Experimental
Evidence of the free-rider problem. An
article by Andreoni. An
article by Falkinger, Fehr, Gaechter
and Winter-Ebmer.
Aaron Swartz and public goods
Social norms and reciprocity: a report
from Morning
Edition on the interaction between humans and machines.
Externalities Chapter
5 in textbook
Worldwide
Pigou-tax to tackle Global Warming.
An article by Joseph Stiglitz.
David Suzuki on Externalities,
Economics, and the Environment. Suzuki calls economics "a form of
brain damage".
An economist responds to Suzuki in the Globe and Mail.
Analysis of Taxation Chapters
15-20 in textbook
Lecture notes: Taxation
and Income Distribution
Article by Peter Diamond
and Emanuel Saez, ÒThe
Case for a Progressive Tax: From Basic Research to Policy RecommendationsÓ
Inequality in Canada: article by Fortin et al.
Video clips on Progressive Income Taxation:
This clip
is from the TV Show ÒThe West WingÓ
This clip
is from the White House from the Obama Adminstration
I.
Lecture notes: Tax
Incidence, DWL of Commodity Tax, HST, BC Carbon Tax
Carbon Tax and Regressivity an
interview with Krishna Pendakur
The Return to the HST in BC, op-ed
in the Globe and Mail
Public Expenditures in Canada Chapters 6;
10-14 in textbook
Lecture notes: Income
Redistribution and Social Welfare Programs
ÒRelatively DeprivedÓ
Defining the minimum living standard.
How Stats Can
calculates the Low
Income Cut off
This clip shows
the actual distribution of income in the US, what people think it looks like,
and what people think it should look like. Hat tip to James Squire!
Take a ride on the
New York Subway and find out about the distribution of income along
different lines.
Chetty,
Friedman, Saez ÒUsing Differences in
Knowledge Across Neighborhoods to Uncover the Impact of the EITC on EarningsÓ
Lecture notes: Employment
Insurance
Card, Chetty, Weber ÒCash-on-Hand and Competing Models
of Intertemporal Behavior: New Evidence from the
Labor MarketÓ
Discussion about Canadian Public
Pension enlargement. Click
here
Problem Sets
Problem
Set 1 Answer
Key to PS1
Problem
Set 2 Answer
Key to PS2
Problem
Set 3 Answer
Key to PS3
Problem
Set 4 Answer
Key to PS4
Problem
Set 5 Answer
Key to PS5
Problem
Set 6 Answer
Key to PS6
Problem
Set 7 Answer
Key to PS7
Practice Exams
Practice
Midterm I Answer
Key to Practice Midterm I
Another Practice Midterm
I Answer
Key to Another Practice Midterm I
Practice
Midterm II Answer
Key to Practice Midterm II
Another Practice Midterm
II Answer
Key to Another Practice Midterm II
2 Practice Exams for Final
Exam
Exam Answer Keys