PUBLIC ECONOMICS - I

Paper Code: 
ECO 125
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are-

  1. To develop an understanding of Public Economics among students. 
  2. To help students to understand the various aspects of taxes and to analyze the trends of taxation in India.
  3. To help students to understand the various aspects of public expenditure and to analyze the trends of public expenditure in India.

Course Outcomes (COs):

Course

Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 125

Public Economics-I

CO10: Acquire knowledge of important theoretical issues related to public finance like taxation, public expenditure, market failure, etc.

CO11: Analyse the trends in public revenue and expenditure in India.

 

Approach in teaching: Interactive Lectures, Discussion,  Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments, Quiz and  Semester end examinations.

 

12.00
Unit I: 
Introduction
  • Nature and scope of Public finance
  • Role of Government Changing Perspective
  • Role of the Government in a Capitalist, Mixed and Socialist Economy
  • Fiscal functions of the government : Allocation, Distribution & Stabilization
  • Government as an agent for Economic Planning  and Development
  • Private and Public sector : Cooperation or Competition
12.00
Unit II: 
  • Private goods, Social goods & Merit goods
  • Market failure: Imperfections, Decreasing costs, Externalities, Uncertainty
  • Externalities : Meaning, Positive and negative externalities, Corrective policy
  • Principle of Maximum Social Advantage
  • Public Revenue : Sources and Classification
12.00
Unit III: 
Taxation I
  • Taxation: Meaning, canons, classification
  • Tax ratio, Buoyancy, Elasticity
  • Effects of Taxation
  • Taxable Capacity : Meaning, Types, Measurement & Determinants
  • Double Taxation
12.00
Unit IV: 
Taxation II
  • Incidence of Taxation
    • Meaning & Distinction between Impact & Incidence
    • Types & Theories of Tax Incidence
    • Shifting of tax under different Cost conditions
    • Shifting of tax under different market conditions (Perfect Competition & Monopoly)
    • Forward & backward shifting
  • Principles of taxation: The Benefit approach, Ability to pay approach
  • Trends of Taxation in India
12.00
Unit V: 
Public Expenditure
  • Public expenditure: Meaning, nature & classification
  • Wagner’s Law of Increasing State Activities
  • Wiseman Peacock Hypothesis
  • Effects of Public expenditure
  • Trends of  Public expenditure in India
Essential Readings: 
  1. Musgrave, Richard A. (1959), Theory of Public Finance, McGraw Hill Inc., US, 1959.
  1. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill Education; 5th edition 2017.
  1. Datt, Gaurav and Mahajan Ashwani, Datt & Sundharam’s Indian Economy, S. Chand & Company Limited, New Delhi, latest edition.
  1. Ganguly Sobrata, Public Finance, The World Press Private Ltd. Calcutta.   
  1. Tyagi, B.P., Public Finance, Jain Praksash Nath & Company, Meerut, latest edition.
  1. Bhatia, H. L., Public Finance, Vikas Publication, New Delhi, latest edition.
Academic Session: 
2019-20
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