Fiscal policy - objectives, instruments and effectiveness 2400-PLSM161A
1. Public revenue (types of public revenue, classification of taxes and tax collection techniques, specific role of tax progression, distribution of the tax burden, optimal direct and indirect taxation, tax systems in the European Union and other countries)
2. Public expenditure (types of public expenditure, growth of public expenditure, Wagner's law, Peacock-Wiseman hypothesis, conditions for efficiency of public expenditure, impact of public expenditure on the private sector, public expenditure as an instrument of income redistribution)
3. State budget (budgetary principles and implementation of the state budget, accounting for the execution of the state budget, the course of the budget cycle, budget balance factors, mechanism of budget deficit formation)
4. Budget deficit and public debt (types of budget deficit, types of public debt, causes of public debt, public debt instruments, public debt dynamics and public debt management, limits to public debt, cost of servicing public debt)
5. Fiscal policy (objectives of fiscal policy, instruments of fiscal policy, criteria for assessing the effectiveness of fiscal policy, fiscal policy and social security systems, fiscal policy and population ageing, fiscal stabilisation policy, Ricardian equivalence concept, Haavelmo's theorem, relationship between fiscal policy and monetary policy)
6. Fiscal policy in the face of globalisation (changes in the structure of public revenue and expenditure as a consequence of international economic integration: the example of the EU, harmonisation of direct and indirect taxes in the EU, tax competition between integrated economic areas, state fiscal policy and the competitiveness of the economy, tax avoidance and tax evasion phenomena in the age of globalisation, consequences of the globalisation of financial markets for public debt management)
Type of course
Course coordinators
Learning outcomes
Upon completion of the course, the student will have an in-depth knowledge of fiscal policy as an element of contemporary public finance systems. He/she will be able to use theoretical knowledge to describe and analyse multidimensional economic phenomena and processes in the field of public finance. After the Master's thesis, the student is able to prepare an extended written work in the field of economics. The student is able to set appropriate priorities for the implementation of the formulated task.
Assessment criteria
A dissertation is required to pass the entire course (the final semester of the seminar can only be passed if the student submits a completed dissertation to the Dean of Students).
Bibliography
Barr N., Economics of the Welfare State, Sixth Edition, Oxford University Press, 2020
Creedy J., Tax and Transfer Tensions, Designing Direct Tax Structures, Edward Elgar Publishing Limited, Cheltenham, UK, Northampton, MA, USA 2011
European Commission: Directorate-General for Taxation and Customs Union, Taxation trends in the European Union – Data for the EU Member States, Iceland, Norway – 2022 edition, Publications Office of the European Union, 2022
Modern Public Fiannce, Volume I & Volume II, edited by Atkinson, A. B. The International Library of Critical Writings in Economics 15, An Elgar Reference Collection, 1991 Musgrave R. A, Public Finance in a Democratic Society, Edward Elgar Publishing Limited, 2000
Raghbendra J. Modern Public Economics, Routledge, London, New York 1998
Rosen H. S., Gayer T., Public Finance, Global Edition, MCGRAW-HILL 2014
Rosen H. S., Public Finance, MCGRAW-HILL Education - Europe 2021
Stiglitz J., Economics of the Public Sector, W. W. Norton & Co Ltd., 2015
Tax Reform in Open Economies, International and Country Perspectives, red. Claus I., Gemmell N., Harding M., White D., Edward Elgar Publishing Limited, Cheltenham, UK, Northampton, MA, USA 2010
The Macroeconomics of Fiscal Policy First Edition, Richard W. Kopcke (Editor), Geoffrey M. B. Tootell (Editor), Robert K. Triest (Editor), The MIT Press, Massachusetts Institute of Technology Cambridge, Massachusetts 2006
Additional literature will be decided on an individual basis with each student, depending on their chosen dissertation topic.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: