Econ 130 (Public Finance) Office: NH 2028

John Hartman
Srin! 2010 hartman (at) econ"uc#b"e$u
Office hour#: %on$a&# 2:1'(3:1' m) *e$ne#$a&# +:1'(10:1' am) an$ b& aointment
(No office hour on %arch 2+)
,ra$in!
-here .ill be three te#t#) .hich .ill $etermine &our entire !ra$e in thi# cla##" -he fir#t t.o te#t#
.ill be /' minute# each) $urin! a re!ularl& #che$ule$ lecture" -he thir$ te#t .ill be 100 minute#
in len!th"
On each te#t) &ou .ill onl& be allo.e$ to u#e en(#)) encil(#)) era#er(#)) ruler(#)) an$ a non(
ro!rammable four(function or #cientific calculator that i# NO- a communication $e1ice"
2alculator# .ith !rahin! caabilitie# or memor& for e3uation# are al#o NO- allo.e$" 4f &ou
are not #ure if &our calculator can be u#e$ for a te#t) &ou are .elcome to chec5 .ith me before
the te#t"
4f &ou $o not mi## an& te#t) &our !ra$e .ill be $etermine$ a# follo.#: 6our t.o be#t #core# .ill
each count for 007 of &our !ra$e" 6our lo.e#t #core .ill count for 207 of &our !ra$e"
(E8cetion: 4f the thir$ te#t ha# the hi!he#t of the three te#t #core#) the thir$ te#t .ill count for
/07 of &our !ra$e an$ &our other te#t# .ill count for 207 of &our !ra$e each")
4f &ou mi## all three te#t#) &our !ra$e .ill be an F" 4f &ou mi## the final te#t) each of the fir#t t.o
te#t# .ill count for 0'7 of &our !ra$e) an$ the final 107 of &our !ra$e .ill count a# 9ero" 4f &ou
mi## one or t.o te#t# (but $o not mi## the thir$ te#t)) &our !ra$e .ill be $etermine$ a# follo.#:
4f &ou mi## one of the fir#t t.o te#t#) the thir$ te#t .ill count for /07 of &our !ra$e an$ the other
te#t ta5en .ill count for 007 of &our !ra$e" 4f &ou mi## both of the fir#t t.o te#t#) &our !ra$e
.ill be $etermine$ from the thir$ te#t alone"
Each te#t .ill be como#e$ of 3ue#tion# that &ou mu#t .rite out &our an#.er" Each 3ue#tion
ma& contain multile art#" ,ra$in! i# at the $i#cretion of the in#tructor) an$ all o#te$ !ra$e#
are final) e8cet .hen there are error# in !ra$in! or calculatin! !ra$e#"
:n& rea#on .ill be accete$ for mi##in! an& te#t" 4f &ou con#i$er mi##in! an& te#t) note that
the#e te#t# .ill not be offere$ e8cet at the re!ularl& #che$ule$ time an$ location) e8cet for the
item# li#te$ belo."
E8cetion# for a$mini#terin! te#t#:
4f &ou .ill mi## a te#t $ue to a re3uire$ acti1it& for another cla## or N2::(#on#ore$
e1ent) &ou ma& #ubmit a re3ue#t to me b& Fri$a&) :ril +" For the re3ue#t to be aro1e$)
4 nee$ to be in contact .ith &our in#tructor) teachin! a##i#tant) or #taff member at lea#t 10
$a&# before the te#t) an$ .e mu#t a!ree to con$ition# of the te#t at lea#t ; $a&# before the
te#t" 4t i# the #tu$ent<# re#on#ibilit& that all nece##ar& con$ition# are #ati#fie$" :n&
re3ue#t# ma$e that $o not meet the#e !ui$eline# .ill be $enie$"
:n& #tu$ent# articiatin! in the =i#able$ Stu$ent# Pro!ram (=SP) mu#t ma5e the
aroriate arran!ement# .ith the =SP office a# nece##ar&" :n& re3ue#t# ma$e to =SP
.ithout #ufficient time to ma5e the aroriate arran!ement# .ill lea$ to the #tu$ent
bein! te#te$ un$er the #ame time an$ room con$ition# a# other #tu$ent# in the cla##"
>eli!iou# rea#on#) #ub?ect to m& a$1ance$ aro1al"
:##i!nin! !ra$e#
Econ 130 i# u#uall& a cla## of about '0(/0 #tu$ent#" Since thi# i# a #mall cla##) 4 .ill a1oi$ a
firm cur1e an$ .ill ba#e !ra$e# in art on ab#olute erformance" Ho.e1er) re1iou# cla##e# 4
ha1e tau!ht ha1e erforme$ aro8imatel& a# follo.#: -he to 20(2'7 of the cla## recei1in! an
:@) :) or :() the ne8t 3'(0'7 a A@) A) or A() the ne8t 30(3'7 a 2@) 2) or 2() an$ the remainin!
#tu$ent# a =@) =) =() or F"
Aa#ic outline of the cla##
Public Finance re3uire# a #oli$ bac5!roun$ in %icroeconomic#" *e .ill #en$ the earl& .ee5#
of the 3uarter on tool# that .ill be imortant for thi# cla##" -hi# .ill be follo.e$ b& toic#
relate$ to ublic e8en$iture an$ ta8ation" -he cour#e i# $i1i$e$ into four unit#) each co1erin!
about three to fi1e lecture#:
Bnit 1: 4ntro$uction an$ %icroeconomic tool#
Bnit 2: Public !oo$#) e8ternalitie#) an$ !o1ernment
Bnit 3: Health care an$ income re$i#tribution
Bnit 0: :n intro$uction to ta8ation
>e3uire$ te8tboo5
>o#en an$ ,a&er) Public Finance) +
th
E$ition (4SAN C i# +;8(0(0;(3'113'(1)
Otional boo5
4f &ou .oul$ li5e #ome rea$in! that alie# economic concet# into e1er&$a& life) the follo.in!
boo5 ma& be intere#tin!: The Economic Naturalist: In Search of Explanations for Everyday
Enigmas) b& >obert H" Fran5 (4SAN C i# +;8(0(0/'(003';(0)"
E8tra cre$it
-o encoura!e $ialo!ue an$ $i#cu##ion in cla##) each #tu$ent that ma5e# at lea#t one intelli!ent
3ue#tion or comment $urin! the 3uarter in lecture .ill recei1e one ercenta!e oint a$$e$ to her
or hi# final !ra$e" 4n or$er to recei1e &our e8tra cre$it) &ou .ill nee$ to inclu$e &our name .hen
&ou #tate &our 3ue#tion or comment"
Other information
-hi# #&llabu# i# #ub?ect to chan!e" :n& chan!e# .ill be ma$e in lecture .ith at lea#t one .ee5 of
notice) e8cet un$er e8traor$inar& circum#tance#"
-entati1e #che$ule for Econ 130) Srin! 2010
Date Topic(s)/Test Reading
%arch 2+ Begin Unit 1: 4ntro$uction to Econ 130
1
D Eie.#
about !o1ernmentD -iebout<# mo$el
%arch 31 4ntro$uction to !o1ernmentD E8ecte$ 1alueD
%ar!inal anal&#i#D Emirical tool#
S&llabu#) 2h" 1) an$ a!e#
18(28 an$ '0/('12
:ril 0 *elfare economic#D %ar5et failureD 2o#t(benefit
anal&#i#D 2ertaint& e3ui1alent 1alue
Pa!e# 30(01) 0/(0+) 1'2(
1'+) 1/2(1/8) an$
1;;(1;8
:ril / Begin Unit 2: Public !oo$# an$ efficient ro1i#ion 2h" 0
:ril 12 4ntro$uction to e8ternalitie# 2h" '
:ril 10 %ore on e8ternalitie#) inclu$in! an alication u#in!
hi!h.a& tra1el
:ril 1+ Eotin! in a $emocrac&D ,o1ernment !ro.th in the
20
th
centur&
2h" /
:ril 21 Publicl&(ro1i$e$ e$ucation 2h" ; an$ a!e# 1;1(1;0
:ril 2/ -ES- 1: >ea$in!# an$ lecture#) %ar" 2+ to :r" 1+
:ril 28 Begin Unit 3: -he role of in#urance in health care)
art 1
Pa!e# 180(1+/
%a& 3 -he role of in#urance in health care) art 2 Pa!e# 1+/(203
%a& ' -he role of !o1ernment in health care
(inclu$in! current health care reform)
2h" 10
%a& 10 Social #ecurit&: 2urrent #tructure an$ lon!(run
roblem#
Pa!e# 22;) 231(23') an$
23+(2'0
%a& 12 Other income $i#tribution i##ue# Pa!e# 2/1(2;2 an$ 2;'(
2+1
%a& 1; -ES- 2: >ea$in!# an$ lecture#) %ar" 30 to %a& 13
%a& 1+ Begin Unit 4: -a8ation an$ artial e3uilibrium Pa!e# 302(310 an$ 32'(
32/
%a& 20 E8ce## bur$en an$ the er#onal income ta8 (art 1) Pa!e# 32+(333) 33;(303)
an$ 3/+(3;'
%a& 2/ -he er#onal income ta8 (art 2) an$ beha1ioral
i##ue# .ith ta8ation
Pa!e# 380(38') 3+8(001)
00/(00+) an$ 01'(01+
%a& 31 NONE (HOF4=:6)
June 2 Fini#h lecture material (if nee$e$)D *ra(u an$
re1ie. of Econ 130 (be rea$& to a#5 3ue#tion#)
-ue#$a&)
June
8)
Noon
(2:30
m
-ES- 3: :ll rea$in!# li#te$ in the >ea$in! columnD
:ll Fecture#
1
For tho#e of &ou that feel .ea5 on &our %icroeconomic# #5ill#) &ou #houl$ rea$ the :en$i8 at the en$ of the
boo5"