Course: Public Finance 2

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Course title Public Finance 2
Course code KUF/VFN2
Organizational form of instruction Lecture
Level of course Master
Year of study not specified
Semester Summer
Number of ECTS credits 3
Language of instruction Czech
Status of course Compulsory, Compulsory-optional
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Lecturer(s)
  • Jílek Milan, doc. Ing. Ph.D.
Course content
1. Public and General government sector. Government financial statistics (GFSM IMF). 2. Information Asymmetry. Principle and agent problem in politics. Rent-seeking. The Economic Theory of Bureaucracy. 3. Public goods. Voluntary payments on public goods, information asymmetry, prisoner's dilemma, Lindahl's solution, Clark's tax, user charges, Tiebout hypothesis. 4. Efficiency and equity in taxation. Distortionary versus lump-sum taxes. Tax incidence of the unit and ad-valorem taxation in a partial equilibrium model. Benefit principle and ability to pay principle in taxation. 5. Political markets and Political equilibrium. Median voter and majority voting. 6. Debt financing of government expenditure. Debt finance and benefit principle in taxation. Overlapping generations' model. Fiscal illusion. Government budget surplus. 7. Deficit bias of public finances. Tax smoothing approach to government finance (Barro). Factors of deficit bias. 8. Fiscal institutions. Ex-ante numerical fiscal rules. Medium-term budgetary frameworks. Independent fiscal institutions. 9. Stability and growth pact. European legislation of fiscal frameworks. 10. Stabilizations and dynamics of government debt.

Learning activities and teaching methods
Monologic (reading, lecture, briefing), Work with text (with textbook, with book), Written action (comprehensive tests, clauses), E-learning, Individual preparation for exam
  • Preparation for classes - 34 hours per semester
  • Class attendance - 15 hours per semester
  • Semestral paper - 10 hours per semester
  • Preparation for exam - 25 hours per semester
Learning outcomes
The aim of the course is to deepen the understanding of topics from bachelor course of Public Finance from both theoretical and policy point of view.
Student understands the main issues and developments of public finance.
Prerequisites
Bachelor level Macroeconomics and Microeconomics reqiured. Bachelor level Public finance recommended.

Assessment methods and criteria
Oral examination, Test, Seminar work

Recommended literature
  • Baldwin, Richard E.; Wyplosz, Charles,; Šaroch, Stanislav,; Jiránková, Martina,; Hnát, Pavel,; Němcová, Ingeborg,; Žďárek, Václav,; Bič, Josef; Viktorová, Dana,; Laboutková, Šárka,; Šmejkal, Václav,; Dolejší, Anna. Ekonomie evropské integrace. 4. vydání. Praha Grada Publishing, 2013. ISBN 978-80-247-4568-8.
  • Baldwin, Richard E.; Wyplosz, Charles. The economics of European integration. Sixth edition. London : McGraw-Hill, 2020. ISBN 978-1-5268-4721-8.
  • Dvořák, Pavel. Veřejné finance, fiskální nerovnováha a finanční krize. Vyd. 1. V Praze : C.H. Beck, 2008. ISBN 978-80-7400-075-1.
  • Hillman, Arye L. Public finance and public policy : a political economy perspective on the responsibilities and limitations of government. Third edition. Cambridge ; New York ; Melbourne ; New Delhi Singapore : Cambridge University Press, 2019. ISBN 978-1-316-50180-1.
  • Hillman, Arye L. Public finance and public policy : responsibilities and limitations of government. Second edition. Cambridge : Cambridge University Press, 2009. ISBN 978-0-521-73805-7.
  • Hyman, David N. Public finance : a contemporary application of theory to policy. 9. ed., international student edition. Mason : Thomson / South-Western, 2008. ISBN 978-0-324-53735-2.
  • Jílek, M. Deficitní sklon veřejných financí a fiskální pravidla. In Úloha veřejných financí v řešení problémů a dopadů současné krize (pp. 5-35. Praha: Wolters Kluwer, 2011.
  • Jílek, Milan. Fiskální decentralizace, teorie a empirie. Vydání první. Praha : ASPI, 2008. ISBN 978-80-7357-355-3.
  • Musgrave, Richard Abel; Musgrave, Peggy B.; Koníčková, Věra. Veřejné finance v teorii a praxi. 1. vyd. Praha : Management Press, 1994. ISBN 80-85603-76-4.
  • Peková, Jitka. Veřejné finance : teorie a praxe v ČR. Vyd. 1. Praha : Wolters Kluwer Česká republika, 2011. ISBN 978-80-7357-698-1.


Study plans that include the course
Faculty Study plan (Version) Category of Branch/Specialization Recommended year of study Recommended semester