Public economics - I

Paper Code: 
ECO 125
Credits: 
4
Contact Hours: 
60.00
Objective: 

To develop an understanding of Public Economics among students.  

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

  1.   Meaning & Distinction between Impact & Incidence
  2.  Types & Theories of Tax Incidence
  3.  Shifting of tax under different Cost conditions
  4.  Shifting of tax under different market conditions (Perfect Competition & Monopoly)
  5.  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.
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. Ganguly Sobrata, Public Finance, The World Press Private Ltd. Calcutta, 1999.
5. Tyagi, B.P., Public Finance, Jain Praksash Nath & Company, Meerut, latest edition.
6. Bhatia, H. L., Public Finance, Vikas Publication, New Delhi, latest edition.
Academic Session: 
2018-19
  • Printer-friendly version
  • PDF version