...ECONOMICS 310: PUBLIC FINANCE Department of Economics Western Washington University Dr. Julia L. Hansen Fall 2013 Office: PH 339, Office Phone: 6503204 Office hours: TR 1-2 p.m. and 4-4:30 p.m. (or by appointment) Additional office hours will be scheduled prior to exams. E-mail address: julie.hansen@wwu.edu Canvas address*: http://canvas.wwu.edu *Please visit the course page on Canvas for access to course documents, additional readings and links to relevant information on the web. COURSE READINGS: Gruber, Public Finance and Public Policy, 4th edition Additional readings as listed on the course outline COURSE PREREQUISITES: Econ 206 and Econ 207 COURSE DESCRIPTION: Public Finance deals with the taxing and spending activities of government. It is alternatively called Public Sector Economics or Public Economics. The focus of the course is on the microeconomic functions of government, and in particular the way that government affects the allocation of resources and the distribution of income. The analysis of the spending activities of government will include a discussion of public goods, externalities, education, welfare programs, Social Security and health care. On the tax side, we will build a framework for tax analysis, and then apply this framework to the personal income tax, the corporation income tax, and other U.S. taxes. COURSE OBJECTIVES: 1. To understand the economic rationale...
Words: 795 - Pages: 4
...THE 2015 STATE OF THE NATION ADDRESS TECHNICAL REPORT Prepared by: The Office of the President of the Philippines TABLE OF CONTENTS TRANSPARENT, ACCOUNTABLE, AND PARTICIPATORY GOVERNANCE 1. Institutionalized Public Accountability .............................................................. 1 2. Upheld Transparency and Citizen Engagement in Government .................... 11 RAPID, INCLUSIVE, AND SUSTAINED ECONOMIC GROWTH 1. Sustained Strong and Broad-Based Economic Growth ................................. 14 2. Increased Opportunities for Employment and Economic Activity .................. 24 POVERTY REDUCTION AND EMPOWERMENT OF THE POOR AND VULNERABLE 1. Invested in the Filipino Workforce for Decent and Productive Work .............. 44 2. Sustained Equitable Access to Affordable and Quality Health Care .............. 50 3. Empowered the Poor and Marginalized towards Self-Reliance ..................... 56 JUST AND LASTING PEACE AND THE RULE OF LAW 1. Protected our National Territory and Boundaries........................................... 61 2. Ensured Public Order and Safety .................................................................. 64 3. Pursued Efforts for Peace and Development in Mindanao ............................ 68 4. Advanced and Protected Human Rights ........................................................ 71 5. Reformed the Justice Sector ......................................................................... 76 INTEGRITY...
Words: 48288 - Pages: 194
...of payment disequilibrium lies in earning more foreign exchange through additional exports or reducing imports. Quantitative changes in exports and imports require policy changes. Such policy measures are in the form of monetary, fiscal and non-monetary measures. Monetary Measures for Correcting the BoP ↓ The monetary methods for correcting disequilibrium in the balance of payment are as follows :- 1. Deflation Deflation means falling prices. Deflation has been used as a measure to correct deficit disequilibrium. A country faces deficit when its imports exceeds exports. Deflation is brought through monetary measures like bank rate policy, open market operations, etc or through fiscal measures like higher taxation, reduction in public expenditure, etc. Deflation would make our items cheaper in foreign market resulting a rise in our exports. At the same time the demands for imports fall due to higher taxation and reduced income. This would built a favourable atmosphere in the balance of payment position. However Deflation can be successful when the exchange rate remains fixed. 2. Exchange Depreciation Exchange depreciation means decline in the rate of exchange of domestic currency in terms of foreign currency. This device implies that a country has adopted a flexible exchange rate policy. Suppose the rate of exchange between Indian rupee and US dollar is $1 = Rs. 40. If India experiences an adverse balance of payments with regard to U.S.A, the Indian demand for...
Words: 5627 - Pages: 23
...to 84% in the same period (Krugman, 2012).Basically, government debt is the money owed by the central government to the debt holders. As a result, with a high level of the debt-to-GDP ratio may imply that the country is less likely to repay the debt holders but higher chance to default on its debt obligations. Greece, contributing about 3.3% of the annual GDP towards the European Union (Central Intelligence Agency, 2012), with a 165.3 % of debt-to GDP ratio in 2011, was responsible for the outbreak of the Euro debt crisis. Historically, Greece Government’s Debt to GDP ratio was already at a relatively high level across Europe (McAuley, 2011)(Graph 1). Following by the adoption of the single currency “EURO”, the difference between the public spending and the income of Greece started to rise eventually (BBC Business NEWS, 2012a). Owing to the poor planning of the fiscal policies, Greek has been suffering from budget deficit since 1995(Graph 2), thus, more debt was issued so as to sustain the government expenditures. The Greece Government Debt level was about 99.2% of the...
Words: 1239 - Pages: 5
...A New House-Economy Checkpoint Chante Yokley XECO/212 December 11, 2011 John McGee A New House-Economy The FED impacts national fiscal policies through interest rates, which impacts the demand in the housing market (Mankiw, N. G., 2007, p. 657). The Department of Treasury introduced a refinancing program that allows consumers to refinance mortgages to take advantage of lower interest rates. The Fiscal Policy impacts prime lending rates, which are the determining factor in consumer borrowing. The higher lending rates mean a higher price paid for a new home. As rates increase, demand decreases causing a decline in the housing market and an overall lag in the economy. A contractionary fiscal policy would provide a short-term decrease in the money supply but would provide lower inflation in the long-run, reducing lending rates and increasing the aggregate demand in the housing market (Mankiw, N. G., 2007, p. 778, pp. 5). The strength of the economy would create an increase in marginal benefits, exceeding marginal costs by strengthening home owner’s equity. The government offers programs and tax incentives (deductions) that subsidize home ownership, making it affordable to be a homeowner. One in particular is the Mortgage Interest Deduction (MID), a popular tax break for middle to higher class citizens; research shows that the beneficiaries from the MID are in these societal classes (Stansel, Dean & Randazzo, Anthony, 2011, executive summary, p. 6). There...
Words: 330 - Pages: 2
...Introduction: This paper reviews macroeconomic causes of financial crisis in 2008. The economist had difficulty for seeing the systematic risk because of the unregulated new financial instruments such as credit default swap and derivatives securities. The Federal Reserve Bank was responsible for the financial crisis due to large amount of money flow in the United States. Thus, US needed to implement the monetary policy in order to overcome from the financial crisis. This paper drafted the causes of financial crisis analyzed by the macroeconomist and drafted by the American Bar Association. The Federal Reserve Bank kept the interest rates historic lows due to recession in 2000-2002. The low interest rates causes the unwanted money supply and this excess credit was invested heavily in the United States in the form of treasury securities and financial derivatives that leaded to bubble in commodities and houses prices. This paper examines the Federal Reserve monetary and fiscal policy during and prior to course of recession in 2008. The economy had faced at least three crises since 2008, fiscal crisis, financial crisis and unemployment crisis. These crises are interrelated. The unemployment crisis during 2008 has causes the fiscal deficit at the frightening level. The economy is still facing the unemployment and fiscal crises. The unemployment rate remains high in the world and the fiscal problem in Europe has not been fully resolved. The Fiscal Policy: The fiscal policy played...
Words: 1904 - Pages: 8
...SHARJAH HIGHER COLLEGES OF TECHNOLOGY PROJECT COVER SHEET- (ASSESSMENT 2) [20%] Course Name | ECON N400 | Faculty Name | Angelo Olo | Project Title | Outlook of the UAE Economy | Due Date | Nov. 4, 2012 | Section | | Date Submitted | 3-11-2012 | Student Name | --- | Student ID | --- | This assessment will assess the following Learning outcomes: This assessment will assess the following learning outcomes: * LO 2: Analyze patterns of economic activity in the UAE from an oil-based economy to development of the non-oil sector. * LO 3: Evaluate the role of the non-oil sectors on the UAE economy. Declaration; Individual: * No part of this assignment has been copied from another source, (not from another group or student, an internet source or a book). * When another person’s words are used, this is shown in the text with “…” and referenced. * No part of this assignment has been written for me by any other person. * I have a copy of this assignment that I can produce if the first copy is lost or damaged.Name ………………………………………………… Signature …………………………………………….Declaration; Group: * No part of this assignment has been copied from another source, (not from another group or student, an internet source or a book). * When another person’s words are used, this is shown in the text with “…” and referenced. * No part of this assignment has been written by anyone other than the members of the group named below. * We have a copy of this assignment that...
Words: 2063 - Pages: 9
...DEPARTMENT OF ECONOMICS –UDOM 1. INTRODUCTION 1.1 Background to the Study Problem Sound Economic Governance is essential for the achievement of the desired reduction in poverty levels and improvements in economic growth in Tanzania. Good Public Financial Management (PFM) is important for efficient, effective and equitable utilization of scarce national resources (REF). Whilst the extent to which policy makers are held accountable to their constituents is an excellent indicator of good governance. Accountability and transparency go hand in hand in developing open and participatory decision-making processes. In 2005, the government of Tanzania reviewed the financial management practices and processes at the central government level. In 2006, the focus has shifted to local government, which now accounts for an increasing proportion of expenditures and is primarily responsible for service delivery in sectors such as primary education and primary health (URT, 2004). This kind of study is therefore wanting to provide a snapshot of how the resource allocation, resource management and control, resource utilization and accountability processes take place in primary schools of Tanzania and to make recommendations for improving the local Public Expenditure management (PEM) framework, institutional performance and capacity building(URT,2010) In February 2004, Cabinet decided to move towards a formula-based system of sectoral block grants, where the level of grants that each local government...
Words: 14395 - Pages: 58
...Stimulus package of Vietnam 2008-2010 Macroecocomics assignment Contents I. INTRODUCTION 1 II. CONTENT 3 1. THEORETICAL BASE OF THE STIMULUS PACKAGE 3 1.1. Definition 3 1.2. The origin and basis of stimulus package 3 1.3. The basic principles to implement stimulus policies 5 1.4. How to increase the AD in the economy? 6 2. ANALYSIS THE FACT OF VIETNAM 7 2.1. The Effects of the Global Crisis 7 2.2. The first demand stimulus package of Vietnam 10 2.3. The explicitness of the fiscal policy…………………………………………………....19 III. CONCLUSION 23 IV. REFERENCES 24 I. INTRODUCTION Since 2007, nations around the world experienced a series of major economic and financial problems. The events began with the financial crisis of 2007–2008, considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. Affected...
Words: 7465 - Pages: 30
...debt (115% of GDP in 2009) Some of the facts which can be depicted from following charts : www.capitalvia.com 2 White Paper - Impact of Greece Crisis Global Research Limited How Country Debts And Budget Deficits Compare? Projected budget deficit for 2009 Budget deficit figs as % of GDP Debt as % of GDP UK 13% Greece 12.5% Spain 11.25% Ireland 54.3% 68.6% 112.6% 65.8% 10.75% 114.6% 5.3% Italy Germany 3.5% 74.3% Source: European Commission / Economic forecast autumn 2009 www.capitalvia.com 3 White Paper - Impact of Greece Crisis Global Research Limited Eurozone: Credit Spreads www.capitalvia.com 4 White Paper - Impact of Greece Crisis Global Research Limited Greece: Public Debt www.capitalvia.com 5 White Paper - Impact of Greece Crisis Global Research Limited...
Words: 2290 - Pages: 10
...NEW TDS RATES APPLICABLE (AS PROPOSED IN THE FINANCE BILL, 2009) ` S. No. Particulars Nature of Payment Section IT 1 Salary 192 If recipient is an Individual or HUF Upto 30-09-2009 SC EC Total During 01-10-2009 to 3103-2010 IT SC EC Total IT If the recipient is a Domestic Company or Firm Upto 30-09-2009 SC EC Total During 01-10-2009 to 31-032010 IT SC EC Total SC not applicable. Only levy EC Payment in excess 10.00 of Rs.5,000 p.a Criteria for Deduction As per slab rates prescribed for women, senior citizens and other Individuals. 2 Interest other than interest on securities 194A 10 - - 10.00 10 - - 10.00 10 - - 10.00 10 3a 3b 3c 3d 3e Payments to Contractors (other than 3b to 3e) Payments to transporters, where PAN is not available Payments to transporters, where PAN is available Payments to Advertising Contractors Payments to Sub-contractors 194C 194C 194C 194C 194C 2 2 2 1 1 - - 2.00 2.00 2.00 1.00 1.00 1 1 0 1 1 - - 1.00 1.00 0.00 1.00 1.00 2 2 2 1 1 - - 2.00 2.00 2.00 1.00 1.00 2 2 0 2 2 - - 2.00 2.00 0.00 2.00 2.00 Payment in excess of Rs.2,500 p.a Payment in excess of Rs.1,20,000 p.a Payment in excess of Rs.1,20,000 p.a Payment in excess of Rs.20,000 p.a Payment in excess of Rs.20,000/- per contract or Rs.50,000 p.a 4 Commission or Brokerage 194H 10 - - 10.00 10 - - 10.00 10 - - 10.00 10 - - 10.00 5a Rent...
Words: 540 - Pages: 3
...Working Paper Series DOES SUBSIDY REMOVAL HURT THE POOR by Manson NWAFOR Kannayo OGUJIUBA Robert ASOGWA Les Cahiers du SISERA – 2006 / 2 AFRICAN INSTITUTE FOR APPLIED ECONOMICS (AIAE) DOES SUBSIDY REMOVAL HURT THE POOR by Manson NWAFOR1 Kannayo OGUJIUBA Robert ASOGWA This research was undertaken with the financial support of the United States Agency International Development (USAID) and the International Development Research Centre (IDRC), Ottawa, Canada February 2006 1 Corresponding author. Contact is: mansonnwafor@yahoo.com AVANT-PROPOS Le Secrétariat d’Appui Institutionnel à la Recherche Économique en Afrique (SISERA) a pour mission de faciliter l’émergence de centres d’excellence en recherche économique en Afrique subsaharienne et de les aider à jouer un rôle effectif dans le processus d’élaboration des politiques économiques. Un des objectifs du Secrétariat est d’aider les centres à disséminer les résultats de leurs travaux de recherche. Les Cahiers du SISERA ont donc été créés pour permettre une meilleure diffusion des travaux de recherche des Institutions partenaires du Secrétariat. La présente édition des Cahiers du SISERA est consacrée à diffusion des résultats des études conduites par six Institutions partenaires du SISERA dans le cadre du programme de formation et de recherche en économie dénommé « Stratégies et analyses pour le développement et l’accès à la croissance (SAGA) » mis en place par l’USAID et administré par SISERA. L’objet de ce programme...
Words: 10029 - Pages: 41
...Characteristics of Fiscal Policy in Bangladesh * Political Culture in Bangladesh and Effect on the Economy * References Aim of the Paper * To analyze how political variables affect the fiscal policy decision making process and study the political process and culture and the institutional constraints in context of Bangladesh to see the effect they have on the fiscal decision making * The research will be conducted through literature review and interview and based on the data between 1972 to 2012. Fiscal Policy: Definition and its Role on the Economy * Fiscal policy – essentially a budget policy encompassing all measures pertaining to the level and structure of government’s financial operations - public revenue, public borrowing and public expenditure . * It seeks to influence the aggregate demand curve through conscious setting of spending and taxation by government policymakers. Politics invariably affects the decision making process. * Basic goals of fiscal policy: * Attain full employment level of equilibrium * Maintain full employment once it is attained * Maintain economic stabilization Effect on the aggregate demand curve of goods and services in the short run and on saving, investment and growth in the long run. Fiscal Policy in the Developing World * Short term goal: Assuming a balanced budget only in normal price stability period. Deficit budget policy during recession and surplus budget...
Words: 814 - Pages: 4
...0What Is Public Debt? Public debt is also sometimes referred to as government debt. It is a term for all of the money owed at any given time by any branch of the government. It encompasses public debt owed by the federal government, the state government, and even the municipal and local government. Public debt accrues over time when the government spends more money than it collects in taxation. As government engage in more deficit spending, the amount of public debt increases. Public debt can either be: 1.1External debt 1.2Domestic debt or Internal Debt 1.1External debt: Public debt can be made up of all sorts of different types of debt. A great deal of public debt is external debt, which is money that is owed by the government to foreign lenders, either in the form of international organizations, other governments, or groups like sovereign wealth funds which invest in government bonds 1.2Domestic debt or Internal Debt: Public debt is also made up of internal debt, where citizens and groups within the country lend the government money to continue operating. In some ways, this is a lot like lending to oneself, since ultimately the responsibility for public debt falls back on the very people lending money. 2.0Benefits of Public Debt * It is an alternative for financing fiscal budget deficit * Deficit budget raise the recession and public borrowing help the economy not to be fall in recession * Public debt refers...
Words: 3276 - Pages: 14
...Fiscal and Monetary Policy The textbook states clearly that the aggregate supply curve (and the economy in general) is heavily influenced by unemployment: “The Keynesian range of the curve is horizontal because neither the price level nor production costs will increase or decrease when there is substantial unemployment in the economy.” (Tucker) This shows that high unemployment should be prevented as much as possible, and quickly alleviated if it begins to rise. “Our Fiscal Policy Paradox”, written by Alan S. Blinder, explores the current fiscal and monetary policy options, and describes which options should be implemented in order to pull the economy out of the recession. The fiscal options that are given are: 1. New jobs tax credit 2. Government hiring 3. Cut sales taxes The tax credit for new jobs would simply be an incentive for employers to hire more people in order to decrease unemployment, which will increase spending in general, a key factor in pulling the nation out of its economic trough. This strategy has been pursued, but not effectively. The author explains: The government could offer tax breaks to firms that increase their employment above some base level. In fact, Congress did just that with the HIRE (Hiring Incentives to Restore Employment) Act in March. But it was legislated on a pitifully small scale and will expire at year's end. We need a larger version that stays around for a while. (WSJ.com) Providing such a credit would theoretically...
Words: 826 - Pages: 4
