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× COURSE CONTENT 1: INTRODUCTION TO PUBLIC SECTOR ECONOMICS Definition of Public Sector Importance of the Public Sector Measuring the size of public sector 2. OVERVIEW OF WELFARE ECONOMICS Meaning of welfare economics Pareto optimal criteria for social welfare Perfect competition and economic efficiency Theory of second best 3. MARKET FAILURE: THE RATIONALE FOR GOVERNMENT INTERVENTION Meaning of market failure Sources of Market failure Roles of Government Government Failure: Government Failure defined and Causes of Government failure 4: THEORY OF PUBLIC GOODS Definitions of public; private and impure goods Other type of goods: merit goods, club goods Characteristics of public goods Efficient / optimal provision of public goods Free rider problem 5: EXTERNALITIES Definitions Types of externalities Consequences of externalities Corrective mechanisms (Private and Public responses) 6: PUBLIC CHOICE THEORY Public choice in direct democracy Public choice in representative democracy 7: THEORY OF PUBLIC EXPINDITURE Meaning of Public expenditure Uses of Public expenditure Principles of Public expenditure Theories of public expenditure growth Public expenditure in Africa: Income distribution; Poverty reduction; Social insurance 8: EVALUATION OF PUBLIC EXPENDITURE PROGRAMMES Benefits and Costs from Public enterprises/projects Public enterprise pricing Evaluation Criteria 9: PUBLIC BUDGET Importance of budgeting Types of budgets • Economics of Public Expenditure EAE 201 KSh 200
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