Public Sector Economics

Code

 PSM 511

Professor

Course objectives (competencies): Upon completion of the course students should be able to:

• Gain new knowledge about the place, role and representation of the public sector in the economic structure of modern economies;
• Argue about the reasons for the existence of the public sector (market failure);
• Understand the failure of the state (government);
• Analyze programmatic approaches to budgeting;
• They focus on public sector financing, deficits and their economic implications.

Course content: 

1. Public sector in modern economies;

2. The public sector in the Republic of Macedonia;

3.  Market versus state (government) resource allocation;

4.  Market failure (existence of monopolies, uneven and socially unacceptable distribution of income, public goods, externalities, asymmetric information, macroeconomic instability) and state regulation;

5. Government failure;

6. Provision of public goods;

7. Analysis of Government Consumption Programs (health, defense, social security, education);8.       Taxation – the microeconomics aspects of taxes;

9. Deficits, public debt and their economic implications.