Economics 751 Public Economics (Part 1)
Fall 2007


Instructor: William H. Hoyt
Professor of Economics
    Office:    335L Gatton Business & Economics Bldg.
                  Lexington, KY 40506-0034
    Phone:   (859) 257-2518
    Email: whoyt@uky.edu
    Fax:       (859) 323-1920

 

Syllabus

Current Class Assignment
Previous Class Assignments

Lectures

Homework

 


Current Assignment

(* denotes articles to be discussed in detail in lecture)

Wednesday, September 19, 2007

 

Today:       Theory of the Second Best: Operationalizing Welfare Measures

Introduction to Optimal Taxation

 

Readings:

 

P. Diamond and D. McFadden, “Some Uses of the Expenditure Function in Public Finance,” Journal of Public Economics, 1974.

 

J. Hausman. “Exact Consumer’s Surplus and Deadweight Loss,” The American Economic Review, 1981.

 

W. Hoyt, Lecture 10: Welfare Measures and the Evaluation of Policy and The Dual Approach and its Uses in Public Economics

 

Assignment 2 Data:  Food Demand Gas Demand

 

Lecture 10: Welfare Measures and the Evaluation of Policy

Lecture 11: Optimal Commodity Taxation

 

Next Class:     Optimal Commodity Taxes

 

Readings:

 

P. Diamond and D. McFadden, “Some Uses of the Expenditure Function in Public Finance,” Journal of Public Economics, 1974.

 

P. A. Diamond and J. A. Mirrlees, “Optimal Taxation and Public Production I: Production Efficiency,” American Economic Review, 1971.

 

P A. Diamond and J. A. Mirrlees, “Optimal Taxation and Public Production II: Tax Rules,” American Economic Review, 1971.

 

 

 

 



Previous Assignments

August 30, 2007

Topic: The Theory of Public Goods and Externalities

Social Indifference Curves

Readings:

*K. J. Arrow. “A Difficulty in the Concept of Social Welfare,” Journal of Political Economy, 1950.

 

 

*P. A. Samuelson. “Social Indifference Curves,” The Quarterly Journal of Economics, 1956.

 

P. A. Samuelson. “The Pure Theory of Public Expenditures”, Review of Economics and Statistics, 1954.

 

P. A. Samuelson, “Diagrammatic Exposition of a Theory of Public Expenditure”, Review of Economics and Statistics, 1955.

 

 

J. Gruber, “Public Goods” Chapter 7 in Public Finance and Public Policy, Worth, 2007.

 

Lecture 1: Normative Analysis and Welfare Economics

Lecture 2: Efficiency and the Market

Lecture 3: Social Indifference Curves

 

September 4, 2007

Topic:

Externalities and Public Policy

Readings:

W. Baumol.  “On Taxation and the Control of Externalities,” American Economic Review, 1972.

 

R. Coase “The Problem of Social Cost” Journal of Law and Economics, 1960.

 

K. Chay and M Greenstone, “Air Quality, Infant Mortality, and the Clean Air Act of 1970,” NBER Working Paper, 2003.

 

J. Gruber, “Externalities: Problems and Solutions” and “Externalities in Action: Environmental and Health Externalities” Chapters 5 and 6 in Public Finance and Public Policy, 2007.

 

 

Lecture 4: Market Failure and Government

Lecture 5: The Problem of Social Costs: Private and Public Solutions


Lectures

Lecture 1: Normative Analysis and Welfare Economics

Lecture 2: Efficiency and the Market

Lecture 3: Social Indifference Curves

Lecture 4: Market Failure and Government

Lecture 5: The Problem of Social Costs: Private and Public Solutions

Lecture 6:  Private Provision of Public Goods and Neutrality

Lecture 7:  Empirical Studies of Public Policy and Private Contributions

Lecture 8: Preference Revelation Schemes for Public Goods

Lecture 9: Estimating the Demand for Public Goods

Lecture 10: Welfare Measures and the Evaluation of Policy

Lecture 11: Optimal Commodity Taxation

Lecture 12: Some Basics on the Theory of Optimal Income Taxation

The Dual Approach and its Uses in Public Economics


Homework

 

Assignment 1 Solutions


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