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UNIVERSITY OF HAWAII AT MANOA

DEPARTMENT OF ECONOMICS

Economics 650 Public Economics Fall 2009

Instructor: Lee H. Endress Lecture: T/Th 4:30 - 6:00pm Room: Saunders 541

Office: Saunders 505 Phone: 971-8953 e-mail: endressl@apcss.org

Course Description: This course is an introduction to the field of public economics. Topics will include: the role of government; general equilibrium and welfare economics; externalities and public goods; excess burden and optimal taxation; asymmetric information; cost - benefit analysis, including aspects of risk and discounting; and an introduction to dynamic public economics addressing policy issues such as national debt, social security, and sustainable development. Course format will be a combination of lecture, student presentations, and seminar style discussions of pertinent issues in public economics. Readings will be from assigned texts and papers from the public economics literature, with emphasis on the "classics." Problem sets will be assigned. All students are required to prepare and present a research paper.

Learning Objectives: The objectives of this course are to (1) prepare students to develop and evaluate public policy; (2) apply advanced microeconomic principles to the public sector; (3) provide exposure to the classic literature of the field; (4) engage students in research that contributes to the field of public economics; and (5) enhance student confidence in teaching and presentation skills.

Required Texts: Boadway and Bruce, Welfare Economics, Blackwell, 1984 Hindriks and Myles, Intermediate Public Economics, MIT Press, 2006 Myles, Public Economics, Cambridge U. Press, 1995

Other References: Dixit, The Making of Economic Policy, MIT Press, 1996 (ISBN: 978-0262540988) Jones, Applied Welfare Economics, Oxford U. Press, 2005 Kaplow, Taxation and Public Economics, Princeton U. Press 2008 Laffont, Fundamentals of Public Economics, MIT Press, 1988 Layard and Glaister (eds), Cost-Benefit Analysis (2nd Ed), Cambridge U. Press, 1994 Salanie, Economics of Taxation, MIT Press, 2003 . Tresch, Public Finance (2nd Ed), Academic Press, 2004

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