Economics is the study of choice under scarcity. Public Finance extends economics to the public sector and explains how governments make decisions in the economy. This course introduces the theoretical foundations and empirical methods for public policy analysis and evaluation. Topics include government budget and debt, taxation, environmental protection, education, social security, labor insurance, health care, and welfare programs. Please note that this course requires significant amount of work outside of the class and commitment to online classroom learning and discussion. Format: On-line synchronous lectures, in-class quizzes, problem sets, presentations, research projects.

Objectives

The course develops analytical frameworks for public finance and government policy. The main goal is to help students acquire empirical research methods and skills in disentangling causes and effects for policy evaluation. After completing this course, students should be able to

·      Provide rationale and theoretical foundations for government intervention

·      Explain the government budget process and break down its key components

·      Examine government fiscal conditions and forecast its long-run sustainability

·      Understand the economic functions, principles, and effects of taxation policy

·      Apply social insurance theory to retirement, employment, health care, welfare

·      Appreciate randomized trial in experimental designs and causal effect inference

·      Find reliable sources for research literature and data on public finance and policy

·      Acquire essential computer skills in basic data processing and statistical analysis

·      Report research findings in presentation in accordance with academic standards

Evaluation

Student evaluation consists of in-class quizzes (20%), five problem sets (25%), presentation (5%), and a research project (50%). The overall evaluation is a letter grade converted from the percentiles taking into account the entire class distribution. Attendance is both a collegial courtesy and an obligation in the course.