Public Economics- I

Paper Code: 
25ECO 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: 

Course Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

25ECO 125

Public Economics-I

(Theory)

Student will

CO25: analyze the role of the Government under different economic systems

CO26: analyze different types of goods,market failure, optimum level of Governmental activity which will lead to maximum social advantage and public revenue

CO27: examine important issues related to taxation

CO28: comprehend the incidence, shifting of burden of taxation under different conditions, principles of taxation and trends of taxation in India.

CO29:  analyze different aspects of public expenditure and its trends in India.

CO30: contribute effectively in course-specific interaction

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, Buoyancyand 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 and Wiseman Peacock Hypothesis
  • Effects of Public expenditure; Trends of  Public expenditure in India

 

Essential Readings: 
  1. Lekhi, R. K. and Singh Joginder Public Finance, Latest edition, Kalyani Publishers, Ludhiana, 2015.
  2. Bhatia, H. L., Public Finance, Recent Edition, Vikas Publication, 2018.

 

References: 

Suggested 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, RuddarandSundharam  K P M Indian Economy, S. Chand & Company Limited, 2018.
  4. Ganguly, Sobrata, Public Finance, The World Press Private Ltd. Calcutta. 1992
  5. Rosen,  S. Harvey and Gayer, Ted  Public Finance, Latest Edition, Tata  MCGrawHill Education Private Limited, 2012.
  6. Hindriks, Jean and Myles, D. Gareth, Intermediate Public Economics, Latest Edition, PHI Learning Private Limited, 2014

 

 

E Resources:

 

Journals:

  • Public Budgeting & Finance, Wiley Online Library
  • Journal of Economics and Public Finance, Scholink

 

Academic Session: 
2025-26
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