Economics 463
                                 Fall 1995

Dennis Coates                                    Office: Administration 808
Office Hours: MW 10-11:00, or by appointment                  Phone : 455-3243

The course has a prerequisite of Econ 311, Intermediate Microeconomic Theory, and Econ 312,
Intermediate Macroeconomic Theory. Throughout the course mathematics will be used, primarily algebra
but also some simple calculus. 

Textbook: Public Finance fourth edition, by Harvey Rosen.

Grade determination: two problem sets, worth 10% of your total score, a midterm worth 30% and a
comprehensive final worth 50% of the final grade.  Missing an exam without a valid university excuse
results in that exam being scored a zero. 

The midterm is on Monday, October 16; the final exam is on Friday, December 15 at 8:00 a.m..  The
problem sets are due on Friday, October 13 and Friday, December 8.

Problem sets will emphasize mechanical solution of models of economic phenomenon to reinforce
understanding of the more intuitive and practical material which will be the focus of the exams.  In other
words, problem sets will emphasize demonstration or derivation of economic insights but exams will
emphasize intuitive explanation and application of those insights.

                              Course Outline

1)  Introductory material covering size and role of government in the economy, history of public finance. 
Read chapters 1, 2 and 3.  Review on your own intermediate micro theory, perhaps by reading the
appendix to the Rosen book (starting on page 550). 

2) Welfare economics. Chapter 4 and its appendix.  

3)  Public goods.  Chapter 5 and its appendix

4)  Externalities.  Chapter 6.

5)  Public choice.  Chapter 7.

We will be about here in the list of topics, perhaps before or in the middle of section 5, at the time of the
midterm.

6)  Redistribution programs.  Chapters 8 and 9.

7)  Introduction to taxation. Chapter 13.

8)  Taxation, efficiency, and fairness.   Chapter 14, including the appendices, and chapter 15.

9)  Personal income taxation and behavior.  Chapters 16, 17 and 20.

10)  Business taxation.  Chapter 18.