(in Polish) Finanse lokalne i regionalne 2400-ZEWW969
1. Decentralization- the causes, types, and limitations of decentralization, economic functions of local, regional, and national authorities.
2. Optimal Size of Local Government: the balance between decentralization and the benefits of scale. Oates's decentralization theorem and the structure and organization of central authorities in Europe.
3. Economics of Local and Regional Expenditures: voter preferences, the median voter model; the concepts of exit and voice as methods for revealing preferences, Tiebout's thesis.
4. Main Problems of Efficient Allocation of Public Tasks in Local Governments: externalities, local public goods, and scale effects, the challenges of analyzing the costs associated with local goods and services, micro and macro justifications for government control; the structure and amount of local administration expenditures in Europe.
5. Economics of Local and Regional Incomes: the economic roles of local and regional finances, principles and types of local income; fiscal stress and its causes, the structure of local incomes in Europe.
6.-7 Economics of local taxes. Features of local tax. Objectives of central government control over local taxes. Taxation efficiency. Tax export and tax competition. Local government fiscal policy. The most important local taxes. Analysis of property tax - case study. Property tax in European countries.
8. Fees as a method of financing public tasks. Problems with optimal imposition of fees on current and capital expenditures, congestion costs, natural monopoly. Types of fees.
9-10. Justification for the use of transfers as a source of financing for local and regional government. Typology of transfers, ways of shaping them. Between equality and efficiency. Economic effects of using subsidies and grants in the median voter model. Special problems - flypaper effect, budget maximization, public choice. Case study - building an effective transfer system.
11-12 Economics of local debt; pay as you go vs pay as you use finance. , how to use financial resources. Macro and micro objectives of using local debt limits.
13-15 summary - scientific research in local and regional finance. Presentation of works prepared by students
Type of course
Course coordinators
Learning outcomes
The students has advanced knowledge of local and regional finance, including public sector changes like decentralization. They understand optimal local government size, task division, fiscal authority, and co-financing methods through transfers, grants, and resident fees. They are also knowledgeable about local debt issues.
The students can assess the effects of public spending, especially aid programs, and perform basic cost-benefit analyses. They can evaluate local government tax policies and the transfer system's impact on finances. They are skilled in planning and conducting research in local and regional finances using appropriate economic models and can interpret and analyze issues like flypaper effects and excessive local government debt. The students can prepare reports and presentations on topics such as local tax policy and transfer systems.
The students recognizes the ongoing evolution of the local and regional public sector and values continuous learning in related interdisciplinary fields. They demonstrate readiness for teamwork, prioritize group tasks, and understand the broader effects of public and private actions.
Assessment criteria
To successfully pass the course, the evaluation criteria are as follows: Writen exam (test+open questions): 40%; Independently prepared work/project: 30%; Class participation and group work, which includes preparation and discussion of 2-3 case studies: 20%; Preparation of a reading card and discussion of selected scientific articles: 10%
Bibliography
P. Swianiewicz; Finanse samorządowe. Koncepcje, realizacja i polityki lokalne; Municipium; Warszawa 2009 (wybrane rozdziały)
A. Kopańska; Zewnętrzne źródła finansowania zadań jednostek samorządu terytorialnego; DiFin; Warszawa 2004 (wybrane rozdziały)
Bailey S. J. ; Local government economics. Principles and practice; MacMillan; 1999
Fisher R. C.; State and local public finance; IRWIN; 1996
Readings in state & local public finance; ed. by D Netzer; M. Drennan; Blackwell; 1997
Musgrave R i P; Public finance in theory and practice; McGraw-Hill; 1989
Additional information
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