Class # 1 Role and Size of the Public Sector (Huynh The Du)
*Joseph E. Stiglitz and Jay K. Rosengard (2015), Chapter 1&2
*Huynh The Du (2013), The role and the nature of the state
POLICY MEMO #1 (THE BIG DIG) DISTRIBUTED, DUE ON 2/29.
Class #2. Tradeoff between Efficiency and Equity (Huynh The Du)
*Joseph E. Stiglitz and Jay K. Rosengard (2015), Chapter 3&7
The course examines the role and choices of the government in the economy. Analyzing the objectives and the trade-offs to achieve the ultimate goals of the economy: the economic efficiency and the social equity. The course not only provides tools, but also frameworks for the analysis and assessment of policy issues in the public sector. The first part of the course presents the basis for state's intervention in the economy, including the role and size of the public sector, the trade-offs between efficiency and equity, the problems of public choice, the political economy of the public sector, the framework for the assessment of social policies such as the education, health and social protection policy of the government. The second part presents the economics of taxation, the optimal tax theory and the distribution of the tax burden between stakeholders. Part 3 analyzes the role of government at all levels in providing public goods and services, transferring of resources and cross-subsidies between levels of government. The final part of the course will present the tax policy in practice including tax incentives, compliance, enforcement, and tax reform.