Public Sector Economics

The purpose of the subject is to convey the basics of theoretical and analytical aspects of public economics as an important part of the national economy. The goal is to select some open issues, such as: why does a public sector exist, whether it is too big or too small, whether the tax policy is good, is it good to have more public expenditures, whether the increase in efficiency is in contradiction with justice, what privatization in the public sector means.

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

Welfare economics and analysis of poverty and inequality; Economic reasons for the existence of the public sector and the relationship to the state; Economic aspects of taxation; Budget; Policy of public expenditures; Programs of public expenditures: pension system, health care, social care, education, judicial system, local self-government; Management of public funds; Reform of public institutions.

Lectures i.e. transfer of systematic 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 methodology for the preparation of professional 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 S. J., (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: Faculty of Administration.