SS 17/18: Public Finance

The course deals with standard public finance topics: we start with an introduction to the economic rationale for government, we define public goods and basic principles of public expenditures. The major part of the course is then devoted to the theory of taxation, i.e. how taxes influence behavior, and an analysis of public expenditure theories. We conclude with an overview of political economy and with some applications of the theories we studied. See the course webpage or the syllabus for more information.

 

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Syllabus

Lecture 1 – Introduction
Lecture 2 – Economic rationale for the government
Lecture 3 – Public goods, cost-benefit analysis
Lecture 4 – Public choice theory, political economy
Lecture 5 – Externalities and the environment
Lecture 6 – Vicious circles, expenditure programs, decentralization
Lecture 7 – Public procurement
Lecture 7b – Public procurement in practice – Guest lecture by Jiří Skuhrovec
Lecture 8 – The welfare state
Lecture 9 – Introduction to taxation, tax incidence
Lecture 10 – Optimal taxation, personal income tax
Lecture 11 – Tax avoidance and tax evasion
Lecture 12 – International tax competition and tax avoidance by companies

Home Assignment 1
Home Assignment 1 – solutions
Home Assignment 2
Home Assignment 2 – solutions

Sample Exam 2018