Selected Topics in Public Economics (ECON417) | GSÜ

Content

Objective

The aim of this course is to introduce students to fundamental issues in public economics concerning economic efficiency, income distribution, inequality, and the role of the public sector in the economy. The course covers market failures, public goods, externalities, asymmetric information, taxation, redistribution, and public expenditure. It also examines the formation and economic consequences of public policies through collective decision-making mechanisms, public choice theories, and fiscal decentralization. The course aims to develop students' ability to analyze government interventions in terms of economic efficiency, equity, and institutional incentives and to critically evaluate alternative policy options using theoretical and empirical approaches.

Course Content

The course covers competitive market equilibrium and economic efficiency, welfare theorems, market failures, public good provision, externalities, asymmetric information, and incomplete contracts. It also examines the growth of the public sector, taxation and redistribution policies, common-pool resource management, collective decision-making mechanisms, social choice and public choice theories, and fiscal decentralization through theoretical models and empirical studies.

Course Learning Outcomes

Analyze market efficiency and the rationale for government intervention.
Evaluate public sector growth and redistribution policies.
Explain the economic effects of asymmetric information and incentive mechanisms.
Analyze public goods, externalities, and the management of common-pool resources.
Evaluate collective decision-making and fiscal decentralization models.
Analyze public policies using theoretical and empirical approaches.

Teaching and Learning Methods

Lectures, examination of theoretical models, reading of academic articles and key references, analysis of case studies and public policies, evaluation of empirical findings, and classroom discussions.

References

1. Hindriks, J., & Myles, G. D. (2013). Intermediate public economics (2nd ed.). MIT Press.
2. Mueller, D. C. (2003). Public choice III. Cambridge University Press.
3. Bowles, S., & Halliday, S. D. (2022). Microeconomics: Competition, conflict, and coordination. Oxford University Press.
4. Ostrom, E. (1990). Governing the commons: The evolution of institutions for collective action. Cambridge University Press.
5. Rosen, H. S., & Gayer, T. (2014). Public finance (10th ed.). McGraw-Hill Education.
6. Persson, T., & Tabellini, G. (2000). Political economics: Explaining economic policy. MIT Press.

Weekly Contents

Theory Topics
Week	Weekly Contents
1	Competitive Equilibrium, Economic Efficiency, and Welfare Theorems
2	Public Sector Growth and the Rationale for Government Intervention
3	Income Distribution, Redistribution, and Political Economy Models
4	Public Good Provision and Optimal Public Expenditure
5	Externalities and Market Failures
6	Asymmetric Information, Adverse Selection, and Moral Hazard
7	Incomplete Contracts and Principal-Agent Models
8	Imperfect Competition, Market Power, and Rent Seeking
9	Common-Pool Resources and the Tragedy of the Commons
10	Common Resource Governance and Collective Action
11	Social Choice, Voting Mechanisms, and the Median Voter Model
12	Taxation, Optimal Tax Policies, and Tax Evasion
13	Public Policies, Income Distribution, and Redistribution
14	Local Public Goods and Fiscal Decentralization

Assessment System

Contribution to Overall Grade
Activities	Number	Contribution
Contribution of in-term studies to overall grade	1	50
Contribution of final exam to overall grade	1	50
Total	2	100

In-Term Studies
Activities	Number	Contribution
Assignments	0	0
Presentation	0	0
Midterm Examinations (including preparation)	0	0
Project	0	0
Laboratory	0	0
Other Applications	0	0
Quiz	0	0
Term Paper/ Project	0	0
Portfolio Study	0	0
Reports	0	0
Learning Diary	0	0
Thesis/ Project	0	0
Seminar	0	0
Other	0	0
Make-up	0	0
Total	0	0

Relation of Proficiency

No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	Demonstrate a basic knowledge of different economic theories and main discussions driving current theoretical approaches		X
2	Demonstrate ability to use basic qualitative and quantitative methods to asses different economic questions of applied fields				X
3	Show a sound understanding of current economic discussions and problems			X
4	Have an effective and clear communication in written and oral formats in different public and professional contexts.				X
5	Demonstrate basic knowledge of the world economic history and a sound knowledge of the Turkish economic history			X
7	Demonstrate knowledge of standard quantitative techniques and empirical models used in economics					X
8	Show ability to apply basic economic theory to an applied topic				X
9	Show a basic understanding of analytical methods, both theory- and model-based				X
10	Show ability to use economic concepts to discuss current economic issues			X
11	Reason logically and work analytically			X
12	Show awareness on social aspects of the economics in different applied and theoretical fields			X
13	Identify appropriate economic models to analyse problems			X
16	Show understanding of basic statistical and econometric concepts and ability to apply basic concepts to own empirical work				X
17	Demonstrate a sound knowledge of the current economic issues in Turkey and a general knowledge of the issues in the world economy			X

ECTS

Activities	Number	Period	Total Workload
Class Hours	14	9	126
Working Hours out of Class	0	0	0
Assignments	0	0	0
Presentation	0	0	0
Midterm Examinations (including preparation)	0	0	0
Project	0	0	0
Laboratory	0	0	0
Other Applications	0	0	0
Final Examinations (including preparation)	1	12	12
Quiz	0	0	0
Term Paper/ Project	0	0	0
Portfolio Study	0	0	0
Reports	0	0	0
Learning Diary	0	0	0
Thesis/ Project	0	0	0
Seminar	0	0	0
Other	0	0	0
Make-up	0	0	0
Yıl Sonu	0	0	0
Hazırlık Yıl Sonu	0	0	0
Hazırlık Bütünleme	0	0	0
Total Workload			138
Total Workload / 25			5.52
Credits ECTS			6