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Economics of Public Sector

Type of study Bachelor
Language of instruction English
Code 153-0571/03
Abbreviation EVS
Course title Economics of Public Sector
Credits 4
Coordinating department Department of Public Economics
Course coordinator doc. Ing. Iveta Vrabková, Ph.D.

Subject syllabus

1. Introduction to the subject, public economics as a sub-discipline of general economics.
2. Status, tasks and tools of the state in the mixed economy. Structure of the national economy.
3. Economic and social reasons for the existence of the public sector and state intervention in the economy.
4. Public goods. Breakdown of public goods according to their consumption patterns. Characteristics of pure and mixed public goods.
5. Economic and social effects of negative externalities. Sources of negative externalities. Regulation of negative externalities by the state. Coas' theorem.
6. The economic and social effects of positive externalities and their support by the state. Sources of positive externalities. Přejnické statky.
7. Types and reasons for the failure of state intervention in the economy.
8. Theory of public choice in the theory of games. Forms of public choice. Median Electoral Theorem.
9. Public policy as a means of achieving strategic tasks of the state. Public interest. Objectives and tools of public policy.
10.Fiscal policy and its bases, tools and objectives. Expansion and restrictive fiscal policy of the state. Budgetary policy and its bases, tools and objectives.
11. Structure and size of the public sector. Public Sector Layer Model. Measuring the size of the public sector and its individual areas.
12. Fiscal policy and its starting points, tools and goals. Expansion and restrictive fiscal policy of the state. Budgetary policy and its bases, tools and objectives.
13. Structure and sources of public revenue. Importance and principles of taxation. Optimal tax system. Horizontal and vertical taxes.
14. Structure and function of public expenditure. Allocation of public expenditure. Redistribution of public expenditure. Stabilization function of public expenditure.

E-learning

The Presentation of lectures available at https://lms.vsb.cz/

Literature

SAMUELSON, Paul Anthony a William D. NORDHAUS. Economics. 19th ed. New York: McGraw-Hill, 2010. ISBN 978-007-126383-2.
SLOMAN, John, Dean GARRATT a Jon GUEST. Economics. Tenth edition. Harlow: Pearson, 2018. ISBN 978-1-292-18785-3 .
STIGLITZ, Joseph E. a Jay K. ROSENGARD. Economics of the public sector. Fourth edition. New York: W.W. Norton & Company, [2015]. ISBN 978-0-393-92522-7.

Advised literature

FORTE, Francesco, Ram MUDAMBI a Pietro NAVARRA, ed. A handbook of alternative theories of public economics. Cheltenham: Edward Elgar, c2014. ISBN 978-1-78100-470-8.
ROSEN, Harvey S., Ted GAYER a Abdülkadir CIVAN. Public finance. 10th ed., global ed. Maidenhead: McGraw-Hill Education, c2014. McGraw-Hill series in economics. ISBN 978-0-07-715469-1.
STIGLITZ, Joseph E. The price of inequality. New York: W. W. Norton & Company, 2012. ISBN 978-0-393-08869-4.