Economics of Public Expenditure EAE 201

Number of Pages: 87 Pages
File size: 1.29 MB
Suitable for: Certificate, Diploma, University and Professional Courses

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 EXPENDITURE

• 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