Topics in Public Finance at Corvinus University

Course Syllabus

Course title: Topics in Public Finance

Code: Given in Neptun

Number of Credits: 6 ECTS as given in the operative curriculum

Level: MA/MSc

Language:  English

Programme:  FEC (Faculty of Economics)

Type: Economics

Semester: Spring

Numbers of classes per week: 4 (Monday, Tuesday, Wednesday, Thursday)

Prerequisites: None

Type of the course: Elective

Name of Department/Institution: Faculty of World Economics

Course instructor:   Prof. Dr. Dr. h.c. H.-Dieter Wenzel

Office hours and availability: After the classes (16.15 - 17.00 Uhr)

Objectives and content:

Public Finance Theory: The course is designed for master program students with interest in the advanced treatment of public economics. Mathematical skills or interest in theoretical methods will be useful. The course will be divided in two parts. In the first week tax incidence theory will be the first topic. Optimal taxation theory and the basic ideas of international taxation will complete the first half of the course. The second part is macrooriented with specific focus on government activities in a growth theory model setting.

Topics for oral exam and papers

Oral exam 10 to 15 minutes and paper 10 to 15 pages

1. The role of government in market economies
2. How to solve the Free-Rider-Problem?
3. Two fundamental theorems of welfare economics
4. The Double Dividend of a Pigouvian Tax
5. Public Goods and optimal supply
6. Market failure in monopolistic supply and natural monopolies
7. Consumer surplus and compensating variation (CV) as different monetary welfare measures
8. Internalizing externalities in theory and practice
9. The Second Best Problem
10. Equity and merit goods
11. Main principles of taxation
12. Tax incidence in competitive markets: The case of unit taxes
13. Tax incidence in competitive markets: The case of ad valorem taxes
14. Tax incidence in monopolistic markets: The case of unit taxes
15. Tax incidence in monopolistic markets: The case of  ad valorem taxes
16. Taxation and economic efficiency
17. Five main rules for optimal tax systems
18. Optimal taxation with specific taxes
19. Basic principles of international taxation

Materials to Download

Presentations and References can be found here.

• Presentations Part 1
• Presentations Part 2
• Presentations Part 3
• Literature Part 1
• Literature Part 2
• Literature Part 3

Formal requirements for papers:

• word 2003 template
• Writing-Tips