Theory of Public Finance

Course Coordinator: Dr. Thomas Chan, B. Cog Sci (HKU); MA (Boston College); PhD (Boston College)

Course Developer: Dr. Fred Ku, Consultant

Advisory prerequisite(s)
You are strongly advised to have already studied ECON A231 and ECON A232.

Aims
This course aims to provide students with the concepts and theories they will need to understand the essence of public finance. Students are expected to learn the implications of government policies with respect to externalities and the provision of public goods from the perspectives of efficiency and equity. The course also aims to provide students with a theorectical framework for taxation policy, and how taxes should be levied to enhance economic efficiency and to promote a fair distribution of income.

Contents
The course covers the following topics:

• Analysis of externalities, public goods and political economy
• Efficiency and equity of taxation
• Government expenditure

Learning support
There will be a series of tutorials scheduled on weekday evenings during the course.

Assessment
There are two assignments and a final examination. Students are required to submit assignments via the Online Learning Environment (OLE).

Set book(s)
Rosen, H S (2014) Public Finance, 10th edn, New York: McGraw-Hill.