Duration
30h Th, 15h Pr
Number of credits
Lecturer
Language(s) of instruction
English language
Organisation and examination
Teaching in the second semester
Schedule
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit 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).
Learning outcomes of the learning unit
Use the tools of economic analysis to understand the role and functioning of the public sector.
The course reinforces the students' competences in the areas of strategy (economic expertise), quality (utilization of analytical tools) and of communication and adaptability (via group tasks).
Prerequisite knowledge and skills
Recommended prerequisite: Intermediate microeconomics.
Planned learning activities and teaching methods
Lectures and student assignments.
Practical details of student assignments will be communicated in due course through the website of the course. Participation in these group exercises and presence for the related presentations is compulsory. For absences of 50 percent or more, such absences will not be excused even if justified.
Mode of delivery (face to face, distance learning, hybrid learning)
Lectures in distance-learning.
Student presentations of their assignment.
Organisational adjustments related to the current health context
Recommended or required readings
Course slides and shorter texts will be provided through the website of the course.
The main course manual is:
Gruber, J. (2016), Public Finance and Public Policy (5th ed.). Macmillan.
Optional textbooks:
- Tresch, R. (2008) Public Sector Economics. Palgrave Macmillan.
- Hillman, A. (2019), Public Finance and Public Policy: A Political Economy Perspective on the Responsibilities and Limitations of Government, 3rd Edition, Cambridge University Press
Assessment methods and criteria
Below you will find information on the evaluation methods planned for in-person and remote exams as well as those planned for hybrid sessions. Depending on how the health crisis evolves, the chosen method will be communicated to you no later than one month before the start of the exam session.
Any session :
- In-person
written exam ( multiple-choice questionnaire )
- Remote
written exam ( multiple-choice questionnaire )
- If evaluation in "hybrid"
preferred remote
Additional information:
Online written exam in the form of a multiple choice on a ULiege platform (75 percent).
Student assignment (25 percent).
Note: The grade of the student assignment counts for both exam sessions.
Work placement(s)
Organizational remarks
2nd semester
Contacts
Professor
A.Jousten, Bât. B31,
Tél. : +32 4 366 31 98,
e-mail : ajousten@uliege.be
Assistant
Giulia Klinges, Bât. B31
Tel. : +32 4 366 30 42
Email: gklinges@uliege.be