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ECONOMICS 350 THE ECONOMICS OF PUBLIC EXPENDITURES
Semester: Winter 2015
Section B1: Tuesday and Thursday 3:30 – 4:50 PM
Location: Tory 1 93
Instructor: Professor Xuejuan Su
Office hours: Wednesday 3-5 pm at 9-22 Tory Building or by appointment Email address: [email protected]
Office phone: (780) 492-4198
Required Textbook: Public Finance in Canada (4th Edition). Authors: Rosen, Wen, and Snodden. ISBN: 9780070071834. Price around $120 (the exact amount depends on the vendor). Used books are ok.
Course Overview
This course introduces students to the economic analysis of government expenditure programs.
It covers economic rationales for government spending programs, as well as the limitations and incentive effects of spending and transfer programs. The analysis will be carried out first in general terms using economic models, and then in the context of public expenditure programs in Canada. By the end of the course, students will develop some familiarity with major expenditure and transfer programs in Canada, and be able to use basic economic analysis to provide reasoned arguments on a variety of public expenditure issues. (This course is on the microeconomics of public expenditures, not the macroeconomic role of government spending.)
Prerequisites
ECON 281 or equivalent. This prerequisite will be enforced.
Course Materials
Announcements, handouts, practice problems, and previous sample exams (as representative evaluative course materials) will be posted on Moodle. Please check the announcement section of Moodle frequently. If you have any troubles accessing the Moodle course website, please send an e-mail to the Moodle support staff. They are the only ones that can help you.
Attendance and Class Participation
There is no mandatory attendance requirement in this course, as rational individuals can be expected to make the best decisions regarding their time allocation choices. ☺ However, not coming to class regularly may hinder your ability to do well in this course. This is a hands-on course. To best learn these mathematical tools, you need to keep up with the daily progress of topics and hone your own skills. Since exams will focus on materials discussed in class, attending class regularly will help save your learning effort, better your understanding, and improve your final grade.
Recording of Lectures:
Audio or video recording of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved accommodation plan. Recorded material is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the instructor.
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Grades
Your grade in Econ 350 will be determined by your exam performance. There are two mid- term exams, to be held in class, and a final exam. All exams are cumulative, but more weight is given to the new materials not covered in the previous exam. The use of notes or books is NOT allowed during the exams, and no calculators or other electronic devices can be used. The breakdown of the scores is shown below, together with TENTATIVE exam dates.1
Mid-term Exam I 30 % Date: February 5 (in class) Mid-term Exam II 30 % Date: March 19 (in class) Final Exam 40 % Date: April 23, 2-4 pm.
Grades reflect judgments of student achievement made by your instructor. These judgments are based on a combination of absolute achievement and relative performance in a class. There are no extra credits or bonus points for this course. The overall grade distribution follows the university guidelines.
Absence from Exams
Following the U of A regulation for excused absences, if a student misses one of the two mid- term exams because of incapacitating illness, severe domestic affliction or other compelling reason (including religious conviction), then the final will count for 70% of the course grade. If a student misses two mid-term exams, then the student is required to write an equivalent exam at a time set by the instructor and the final will count for 70% of the course grade. If the student does not write the assigned make-up exam at the prescribed time, a raw score of zero will be assigned for all missed exams (refer to Calendar, §23.5.6, Point 1).
A student who has missed a final exam because of incapacitating illness, severe domestic affliction or other compelling reason (including religious conviction) may apply for a deferred exam. A deferred final exam will not be approved if a student, excluding the final exam, has completed less than half of the assigned work (Calendar, §23.5.6, Point 2). Hence if you have written only one term exam you cannot apply for a deferral.
1 Other deadlines: January 16, Registration (Add/Delete); February 4, Fee Refund 50%; and finally, April 1, Withdrawal (Grade W).
Descriptor
Letter Grade
Point Value Excellent
A+
A A-
4.0 4.0 3.7 Good
B+
B B-
3.3 3.0 2.7 Satisfactory
C+
C C-
2.3 2.0 1.7 Poor
Minimal Pass
D+
D
1.3 1.0
Failure F 0
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Students with special needs (University Calendar §25.2):
Students with disabilities or special needs that might interfere with their performance should contact the professor at the beginning of the course with the appropriate documentation. Every effort will be made to accommodate such students, but in all cases prior arrangements must be made to ensure that any special needs can be met in a timely fashion and in such a way that the rest of the class is not put at an unfair disadvantage.
Exam arrangements: SSDS (Specialized Support and Disability Services) and the student, with the approval of the course instructor, determine exam accommodations. Assessments and/or documentation of the need for accommodation are required. At the beginning of each term, the student meets with instructors to review the exam arrangements which will be used. They provide a “Letter of Introduction” from SSDS verifying the nature of the accommodations required due to the disability. A few weeks before each exam, the student completes an “Exam Schedule” form, for SSDS, outlining scheduled exam dates, times, etc. At least one week before the exam the student then takes an “Exam Instructions and Authorization” form to the instructor. The instructor is asked to complete the form and enclose it with the exam and arrange to have it delivered or mailed to SSDS. In administering exams, SSDS follows university protocol and only makes accommodations as required due to the disability. Exams are usually set to overlap with the time the professor has set the in-class exams.
Learning and working environment
The Faculty of Arts is committed to ensuring that all students, faculty and staff are able to work and study in an environment that is safe and free from discrimination and harassment. It does not tolerate behaviour that undermines that environment. The department urges anyone who feels that this policy is being violated to:
• Discuss the matter with the person whose behaviour is causing concern; or
• If that discussion is unsatisfactory, or there is concern that direct discussion is inappropriate or threatening, discuss it with the Chair of the Department.
For additional advice or assistance regarding this policy you may contact the student ombudservice: (http://www.ombudservice.ualberta.ca/). Information about the University of Alberta Discrimination and Harassment Policy and Procedures can be found in the GFC Policy Manual, section 44 available at http://gfcpolicymanual.ualberta.ca/.
Please read the following notes
“Policy about course outlines can be found in Section 23.4(2) of the University Calendar.”
“The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at http://www.governance.ualberta.ca/en/CodesofConductandResidenceCommunityStandar ds/CodeofStudentBehaviour.aspx) and avoid any behaviour which could potentially result in the suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.”
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Tentative Course Schedule:
1. Introduction
a. Introduction to Public Finance in Canada (chapter 1) b. Welfare Economics (chapter 2)
c. Economic Roles of Government (chapter 3) 2. Framework for Public Expenditure Analysis
a. Public Goods (chapter 4) b. Externalities (chapter 5)
c. Income Redistribution (chapter 6) 3. Public Expenditure in Canada
a. Health care (chapter 9)
b. Employment Insurance (chapter 10) c. Public Pensions (chapter 11)
d. Social Welfare Programs (chapter 12) e. Education (chapter 13)
4. Political Economy
a. Public Choice (chapter 7) b. Fiscal Federalism (chapter 8)