Public Finance Review - Outline
Why do we have government? Mixed Economy ties to when markets work well and when government intervention is likely to be desirable

Difficulties of Measuring government impact implications and ties to how government can influence behavior, distinguishing "on budget" and "off budget" effects

Positive and Normative Economics ties to Welfare Economics, utility and consumer & producer surplus concepts

Public Goods nonrival and non excludable in consumption ties to concern about under provision due to free riding, potentially distinguish from publicly provided goods, and public production of goods

Externalities costs or benefits to 3rd parties ties to Coase Theorem

Equity and Social Policy What distribution would be fair?
Process versus outcome considerations

Income redistribution and poverty programs - history, examples of in kind aid, AFDC, TANF

Social Insurance Unemployment insurance compensation, Social Security (OASDI), Medicare, Medicaid

Cost Benefit Analysis

Tax Incidence Theory ties to Partial Equilibrium & General Equilibrium Models

Conflicting goals in tax design ties to Vertical & Horizontal Equity, Benefits Received, & Efficiency as well progressive, regressive, and proportional tax structure concepts

Efficiency Losses ties to income and substitution effects, Ramsey Rule, inverse elasticity rule, and Corlett-Hague Rule as well administrative costs, compliance costs, avoidance costs, and evasion costs

Personal Taxes in the US

        Haig-Simons definition of Income vs. practical concerns

Corporate Taxes in the US

Debt & deficits ties to:

Consumption Taxes
Sales taxes, unit vs. ad valorem, distortionary effects, VAT,
User fees

Wealth taxes, Estate and Gift Taxes, Property taxes

Fiscal Federalism

What level(s) of government should be involved?
Some key Considerations:

Effects of Lump Sum, Matching, and Closed-Ended Matching Grants