Public Sector Economics

This course is intended to provide the basis of theoretical and analytical aspects of public economics as an important part of the national economy. The goal is to select some open questions, e.g.: why there is a public sector, is it too large or too small, is the tax policy good, is it good to have more public expenditures, is the increase in efficiency in contrast with righteousness; What does the privatization in the public sector mean.

The students should understand and critically analyze current policy of the most important areas of public expenditures by using economic methods. In addition, they should understand the analytical framework for the operation of the public sector, and efficiency in the implementation of economic, social, educational and other functions of the public sector. Finally, the student should develop a sense of social responsibility for economic and value aspects of the public sector.

Welfare economics and analysis of inequality and poverty; Economic reasons for the existence of the public sector and the relationship towards the state; Economic aspects of taxation; Budget; The policy of public expenditures; Public expenditure programs: pension system, health care, social care, education, judicial system, local self-government. The management of public funds; The reform of public institutions.

Lectures i.e. systematic transfer of knowledge from the literature. Illustrations and exercises. In addition to examples that will be discussed, the classes will involve solving problem tasks that will illustrate and practice specific topics. Discussions of case studies. Preparation and presentation of seminar paper with the mandatory application of the Instructions for the preparation of scientific papers.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Stiglitz, J. E. (2004). Economics of the Public Sector. Belgrade: Faculty of Economics; Bailey, J. S., (2002). Public Sector Economics, Theory, Policy and Practice. Palgrave, Second Edition; Setnikar-Cankar, S.; Klun M.; Pevcin P.; Aristovnik A. (2003). Public sector economics, Ljubljana: FU.