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| ECON0091-1 | Economic aspects of public finance
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| Duration : | 30h Th, 15h Pr |
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| Credits/ECTS : |
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| Holder(s) : | Alain Jousten |
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| Language : | Langue française |
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| Course contents : | This course analyzes the public sector concerning the allocation of resources and the redistribution of income.
It discusses the role of the public sector, the difference between private and public goods, public choice and externalities.
Tax policy relies on two broad principles: equity (progressivity, tax capacity) and efficiency. We outline the main results of optimal (direct and indirect) taxation. The concept of tax expenditures is introduced.
The main categories of taxes are reviewed: Income taxes: progressivity and tax base, individual versus household basis. Labor taxation: incidence, negative income tax. Consumption tax: expenditure tax, ad valorem versus unitary taxes, value added tax (VAT), excises. Corporate profit tax: objective, incidence, depreciation allowances.
Finally, We use cost-benefit analysis, voting mechanisms, etc to analyze the main expenditure programs (health, retirement, education, etc). |
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| Course objective : | Use the tools of economic analysis to understand the role and functioning of the public sector. |
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| Prerequisites : | Intermediate microeconomics |
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| Workshops : | Compulsory group exercises applying the theoretical concepts in the context of realistic scenarios. |
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| Organization : | Second semester. |
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| Written notes : | Course manual:
HOLCOMBE, R., Public Sector Economics, The role of the Government in the American Economy, Pearson
Recommended readings
- STIGLITZ, J.E., Economics of the Public Sector, Norton
- ROSEN, H.S., Public Finance, Irwin. |
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| Assessment : | Group exercises; (20%)
Written exam. (80%) |
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| Contacts : | Professor
A.Jousten, Bât. B31,
Tel. : +32 4 366 31 98,
e-mail : ajousten@ulg.ac.be
Assistant
Claire Maréchal, Bât. B31
Tel. : +32 4 366 31 07
Email:claire.marechal@ulg.ac.be |
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