PUBLIC ECONOMICS - I

Paper Code: 
ECO 125
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To develop an understanding of Public Economics among students. 
  2. To help students to examine the various aspects of taxation and to analyze the trends of taxation in India.
  3. To help students to describe 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

CO11: Students willexamine important theoretical issues related to public finance like taxation, public expenditure, market failure, etc.

CO12: Students willanalyse the trends in taxation and publicexpenditure 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: 
Basic Concepts

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., Theory of Public Finance, McGraw, 1959.
  2. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill Education; 5th edition 2017.
  3. Datt, Gaurav and Mahajan Ashwani, Datt&Sundharam’s Indian Economy, S. Chand & Company Limited, New Delhi (latest edition).
  4. GangulySobrata, Public Finance, The World Press Private Ltd. Calcutta.
  5. Tyagi, B.P., Public Finance, Jain PraksashNath& Company, Meerut, (latest edition).
  6. Bhatia, H. L., Public Finance, Vikas Publication, New Delhi, (latest edition).

 

 

Academic Session: 
2021-22
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