Economics 325: Public Economics
Fall 2012

Martin Farnham

email:(please read course outline for policy on email *before* emailing me)
mfarnham@uvic.ca
tel: 
250-472-4422
office: BEC 354

Lectures                                                                                                                                                     Office Hours
Tuesday Wednesday Friday, 1:30-2:30pm                                                                                         Tuesdays 2:30-4:00
Cornett B108

Course Outline.
How_to_study_economics

Announcements
See Final Exam Info document for information on the final, including coverage and extra office hours.

Slides (see course outline for corresponding readings in optional text):
T1_intro_review T2_externalities T3_public_goods T4_inc_redist T5_healthcare T6_public_pensions T7_education
T8_tax_basics T9_income_tax

Problem Sets
pe_pset1     pe_pset1_soln
pe_pset2     pe_pset2_soln
pe_pset3     pe_pset3_soln
pe_pset4     pe_pset4_soln
pe_pset5     pe_pset5_soln

Additional Readings/Links
Review of Basic Consumer Theory
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.
Income Distribution and Taxing the Rich (a Globe and Mail article by Kevin Milligan at UBC)
The 2012 Nobel Prize in Economics
Healthy Lifestyles may not save taxpayers money (a Globe and Mail "Economy Lab" blog entry by Chris Auld)

An episode from "This American Life" (National Public Radio) that discusses non-cognitive skills development in kids.
     This is a great episode. It deals with economics, psychology, neuroscience, and policy. It's important for people thinking about education policy, poverty, and welfare policy. And it has lessons even for adults (like you) about how we learn and how much control we have over our ability to learn, even as we get older. And it gives you some insight into what I think is some of the most exciting current research in the social sciences (this stuff is way deeper than just  research about education).  It's also hilarious in parts. The broad points from this clip (which is free to listen to) will be fair game for the final exam.

BC Budget calculator. If you'd like to get a sense of where provincial revenues come from and what the money gets spent on, here's an online tool you can play with.

Article from The Economist on the fiscal cliff negotiations in the US. Focuses on a discussion of whether marginal tax rates should be raised, with some empirical evidence cited.  Note how the discussion addresses both the effect of marginal tax rates on economic activity and on deadweight loss (even though DWL is not mentioned by name). 

An interesting piece on tax distortions arising from construction-related taxes. The comments are as interesting as the blog post itself, with people chipping in various other examples of strange taxes and associated behavioural responses. Cocktail parties full of economists might be interesting after all.

Ken Burns did a great documentary called Prohibition a year or so ago, about the period in US history when alcoholic beverages were banned.  It's well worth watching.  Prohibiting a good is equivalent to putting a very high tax on it.  Even lower taxes can lead to behaviours similar to those resulting from prohibition. The economics and politics and sociology of Prohibition is fascinating. Here's a taste.

Exam Info
Midterm1_info
Practice_midterm1     Practice_midterm1_solns
Midterm1_grades
Post_MT1_comments
MT1_version1_solns
MT1_version2_solns
Midterm2_info
Practice_midterm2     Practice_midterm2_solns
Midterm2_grades
MT2_version1_solns
MT2_version2_solns

Practice_final
Final_exam_info

Blogs you might enjoy
Economy Lab (Globe and Mail)
Marginal Revolution
Worthwhile Canadian Initiative