Public Economics

Universidad Carlos III de Madrid

Course Description

  • Course Name

    Public Economics

  • Host University

    Universidad Carlos III de Madrid

  • Location

    Madrid, Spain

  • Area of Study

    Business, Business Administration, Business Management, Economics, International Business, International Economics, Mathematics

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • ECTS Credits

    6
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    STUDENTS ARE EXPECTED TO HAVE COMPLETED

    1. MATHEMATIC ANALISYS, INCLUDING AN INTRODUCTION TO CONSTRAINED OPTIMIZATION

    2. INTERMEDIATE MICROECONOMICS, INCLUDING AN INTRODUCTION TO GENERAL EQUILIBRIUM

    TO DISPELL ANY DOUBTS:

    1. THE FIRST DAY OF CLASS YOU WILL BE GIVEN A SET OF REVIEW PROBLEMS, PART OF WHICH WILL BE DUE THE FOLLOWING WEEK.

    TO PROVIDE THE NECESSARY INCENTIVES, REVIEW PROBLEMS WILL ALWAYS GET DOUBLE MARK.

    2. STUDENTS ARE SUPPOSED TO BE FULLY ACQUAINTED WITH THE FOLLOWING TOPICS:

    I. GENERAL EQUILIBRIUM

    III. INDIVIDUAL CONSUMER BEHAVIOR

    IV. INDIVIDUAL FIRM BEHAVIOR

    V. PARTIAL EQUILIBRIUM

    COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS.

    Students of this subject will acquire knowledge and understanding in the following four areas.
    I. STATE INTERVENTION
    . Knowledge of the variety of situations in which the free market leads to inefficient outcomes or a socially unacceptable distribution of wealth or resources, paving the way for an economic justification for state intervention.
    . Understanding of possibilities and difficulties associated with state intervention: public goods, externalities, asymmetric information, and redistribution.
    II. SOCIAL CHOICE
    . Awareness of the fundamental difficulties in any attempt to aggregate individual preferences for public or collective decisions.
    . Familiarity with how to reconcile the idea of economic efficiency and distributional equity in spite these difficulties.
    III. INCIDENCE, EFFICIENCY AND EQUITY IN THE TAX SYSTEM
    . Acquaintance with the idea that the tax burden does not necessarily falls on the economic agent liable to pay the tax.
    . Awareness that any tax policy that alters the economic activities¿ relative prices results in the impoverishment of the economy. Awareness that the distorting change in their behavior that involves a welfare loss is known as the excess burden.
    . Ability to analyze the excess burden in three basic cases: the choice of a consumer good or service versus all other goods, the choice between consumption and leisure, and the choice in an inter-temporal consumption model.
    IV. FISCAL SYSTEM STRUCTURE AND THE IDEA BEHIND LA REFORMA FISCAL.
    . Knowledge of the structure and the basic problems plaguing the income tax of individuals, corporation tax, contributions to social security tax, and value-added tax and inheritance transfers.
    . Knowledge of the basic ideas on fiscal decentralization.
    . Knowledge of the basic economic ideas that are envisaged under the banner of "Tax Reform".
    This knowledge and understanding will be complemented by the following skills:
    . Ability to analyze the design of the tax system.
    . Ability to defend and justify personal beliefs on public economics and the tax system.
    . Ability to maintain a critical and analytical perspective and to distinguish between the positive and normative elements of political debate.

    LEARNING ACTIVITIES AND METHODOLOGY

    There will be a final exam (60%) as well as continuous evaluation. The latter consists of a set of exercises that students are supposed to hand in on a weekly basis (10%), student presentations of certain parts and some tests (30%)

    BASIC BIBLIOGRAPHY

    J. Mirrlees,. S. Adam, T. Besley, R. Blundell, S. Bond, R. Chote, M. Gammie, P. Johnson, G. Myles and J. Poterba, . Tax by Design: The Mirrlees Review, Oxford University Press, . 2011(http://www.ifs.org.uk/mirrleesReview/design) (Mirrlees)

    Stiglitz, . Joseph, . Economics of the Public Sector,. Third Edition

Course Disclaimer

Please note that there are no beginning level Spanish courses offered in this program.

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.

Please reference fall and spring course lists as not all courses are taught during both semesters.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.