Public Finance

The economic principles used to analyze government's role in the economy are developed. Microeconomic theory is used to examine government tax and expenditure policies, especially as they affect resource allocation and income distribution. Both efficiency and equity questions are addressed. Topics include expenditure programs designed to affect the allocation of resources (e.g. national defense outlays, income distribution)(e.g. food stamps), and the major forms of taxation (e.g. income and sales taxes). Prerequisite: ECON 294 or permission of instructor.