Public Choice and Public Finance
Lecture by Prof. Dr. Cay Folkers.
Public Choice and Public Finance, WT 2007/2008
Prof. Dr. Cay Folkers
Professor of Public Economics, Ruhr-University of Bochum
Lecture without Tutorial
Schedule:
- 09th of November 2007, 8 c.t. - 10, 10 c.t. - 12, 14 c.t. - 16, HS 006 Wilhelmstr. 26
- 10th of November 2007, 8 c.t. - 10, 10 c.t. - 12, ÜR 1 UB
- 07th of December 2007, 8 c.t. - 10, 10 c.t. - 12, 14 c.t. - 16, HS 006 Wilhelmstr. 26
- 08th of December 2007, 8 c.t. - 10, 10 c.t. - 12, HS 006 Wilhelmstr. 26
- 18th of January 2008, 8 c.t. - 10, 10 c.t. - 12, 14 c.t. - 16, HS 006 Wilhelmstr. 26
- 19th of January 2008, 8 c.t. - 10, 10 c.t. - 12, HS 006 Wilhelmstr. 26
Target Group
IMP students (second year, MEP) and Diploma students (Hauptstudium, anrechenbar für Pflichtfach Wirtschaftspolitik: Ordnungspolitik, Pflichtwahlfach Ordnungs- und Wettbewerbspolitik).
Credits
4 Credit Points.
Downloads
Syllabus (Preliminary) and Basic Textbooks
I. Introduction - The impact of public choice theory on positive and normative public finance
II. Public Goods and Fiscal Decisions
- Orthodox theory of public goods and collective decisions
- Majority voting on public goods provision
- Simple models – one-dimensional issues
- Complex models – multidimensional issues, logrolling, agenda control
- Political power and supply of public goods
- Pure majoritarian democracy, endogeneity of alternatives, and the supply of public goods
- Political cooperation in a federal democracy – universalism and mutualism in public expenditure decisions
- Constitutional rules for spending decisions
III. Taxation and Tax Reform
- Orthodox theory of efficient and equitable taxation
- The welfare cost of taxation
- Optimal commodity taxation
- Optimal income taxation
- Constitutional theory of taxation
- The constitutional approach to taxation
- Tax institutions for Leviathan
- Tax institutions for pure majoritarian democracy
- Tax structure in representative democracies
- Tax reform and the fiscal constitution
IV. Fiscal Federalism and European Integration
- Orthodox theory of fiscal federalism
- Public choice theory of federal fiscal systems
- Fiscal federalism and the European Union
- Public choice theory of European Integration
- Aspects of a constitutional contract for the EU
V. Summary and Conclusions - Public choice, public sector growth, and constitutional order
Basic Textbooks:
- Buchanan, J.M. and M.R. Flowers (1987), The public finances, 6th Ed., Homewood, Ill.: Richard D. Irwin.
- Cullis, J. and Ph. Jones (1998), Public finance and public choice, 2nd Ed., Oxford: Oxford University Press.
- Mueller, D.C. (2003), Public choice III, Cambridge, U.K.: Cambridge University Press.