PUBLIC ECONOMICS


 

Course Description

Public economics is the study of government policy from the points of view of economic efficiency and equity. The paper deals with the nature of government intervention and its implications for allocation, distribution and stabilization. Inherently, this study involves a formal analysis of government taxation and expenditures. The subject encompasses a host of topics including public goods, market failures and externalities. The paper is divided into two sections, one dealing with the theory of public economics and the other with the Indian public finances.

Course Outline

1. Public Economic Theory

a. Fiscal functions: an overview.
b. Public Goods: definition, models of efficient allocation, pure and impure public goods, free riding.
c. Externalities: the problem and its solutions, taxes versus regulation, property rights, the Coase theorem.
d. Taxation: its economic effects; dead weight loss and distortion, efficiency and equity considerations, tax incidence, optimal taxation.

2. Indian Public Finances

a. Tax System: structure and reforms 
b. Budget, deficits and public debt
c. Fiscal federalism in India



THIS SECTION COMPRISES STUDY MATERIAL OF PUBLIC ECONOMICS
WHICH IS OF UTMOST IMPORTANT CONTAINING MAINLY IMPORTANT TOPICS.




THIS SECTION COMPRISES PREVIOUS YEAR QUESTION PAPERS OF PUBLIC ECONOMICS.




Readings:

1. J. Hindriks, G. Myles: Intermediate Public Economics, MIT Press, 2006.

2. H. Rosen, T. Gayer: Public Finance, 9th ed., McGraw-Hill/Irwin, 2009.

3. Joseph E. Stiglitz, Economics of the Public Sector, W.W. Norton & Company, 3rd
edition, 2000.

4. R.A. Musgrave and P.B. Musgrave, Public Finance in Theory & Practice,
McGraw Hill Publications, 5th edition, 1989.

5. John Cullis and Philip Jones, Public Finance and Public Choice, Oxford
University Press, 1st edition, 1998.

6. Harvey Rosen, Public Finance, McGraw Hill Publications, 7th edition, 2005.

7. Mahesh Purohit, Value Added Tax: Experiences of India and Other Countries,
2007.

8. Kaushik Basu and A. Maertens (ed.), The New Oxford Companion to Economics in India, Oxford University Press, 2013.

9. M.M. Sury, Government Budgeting in India, 1990.

10. M. Govinda Rao, Changing Contours of Federal Fiscal Arrangements in India, Amaresh Bagchi (ed.), Readings in Public Finance, Oxford University Press,
2005.

11. Paul Samuelson, 1955, ―Diagrammatic Exposition of a theory of Public
Expenditure, Review of Economics and Statistics, Volume 37.

12. Shankar Acharya, 2005, ―Thirty Years of Tax Reform in India‖, Economic and
Political Weekly, May 14-20.

13. Rangarajan and D.K. Srivastava, 2005, ―Fiscal Deficit and Government Debt: Implications for Growth and Stabilization”, Economic and Political Weekly, July2-8.

14. M. Govinda Rao, 2011, ―Goods and Services Tax: A Gorilla, Chimpanzee or a
Genius like Primates?, Economic and Political Weekly, February 12-18.

15. Report of the 13th Finance Commission, 2010-15.

16. Economic Survey, Government of India (Latest).

17. State Finances: A Study of Budgets, Reserve Bank of India (Latest).


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