Financing of the Public Sector

Acquisition and mastery of knowledge in order to gain a coherent position on government spending and taxation.

The content of the subject is focused on trying to detect correlations between economic analysis and current political issues where students will learn about the needs of reform proposals in social insurance, social welfare and public good.

Public finance and ideology; View of the state and size of the government sector; Welfare economics; Failure of the market; Public good and solving the dilemma of public or private; Provision of goods; Cost-benefit analysis; Specifics of markets of health care, pension insurance and education; Expenditures programs intended for the poor; Taxation of citizens and corporate income tax; Financing the budget deficit.

During lectures, the theoretical knowledge in the subject area is transferred to students with the use of Power Point presentations. Exercises are conducted by creating specific essays, considering audit issues, examples of audit reports and the like. Preparation and presentation of the seminar paper is done with the mandatory application of the methodology for the preparation of professional papers. Students are regularly encouraged to have an active attitude towards the lectures and exercises, i.e. proactive participation in and mastering of curriculum during lectures and exercises, participation in consultations, as well as independent work.

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)

Rosen, H. S.; Gayer, T. (2009). Public Finance. Belgrade: Faculty of Economics (chapters: 2, 3, 4, 7, 8, 9, 10, 11, 13, 17, 18, 19 and 20); Stiglitz, J. E. (2004). Economics of the Public Sector. Belgrade: Faculty of Economics (chapters: 1, 2, 3, 6, 8, 10, 11, 14, 16 and 18).