lecturer of 2022/2023 Autumn semester
Indrek Saar (language of instruction:Estonian)
Rünno Lumiste (language of instruction:English)
The aim is to give an overview of the main aspects of public sector economics, to analyse when the government should intervene in the economy and how efficient is public decision-making. Furthermore, to give the necessary knowledge of how should government taxes and expenditures be formed.
Brief description of the course
The public sector and its size. Social welfare function. The economic role of government. Market failures. Public goods. Efficient provision of public goods. Public choice, clubs, committees. Principles of taxation: the benefit principle, ability to pay. Tax revenues. Government expenditures: health, education, social insurance. Local governments. Fiscal federalism. Local taxes and services.
Learning outcomes in the course
Upon completing the course the student:
- has an overview of main economic questions and problems related to state revenues and expenditures and fiscal relations between central and local governments;
- analyzes the reasons behind government intervention in the economy and knows how the collective decisions are made;
- is able to express and reason his or her opinion orally or in writing;
- is able to ask questions and start the discussion;
- is able to report the results of the analysis in writing.