Course: Economics of Public Sector

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Course title Economics of Public Sector
Course code UEV/EEPS
Organizational form of instruction Lecture + Seminar
Level of course Master
Year of study 1
Semester Winter
Number of ECTS credits 6
Language of instruction English
Status of course Compulsory-optional
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Lecturer(s)
  • Stejskal Jan, prof. Ing. Ph.D.
  • Gyamfi Solomon, Ing. Ph.D.
Course content
Introduction to problem Economics and public economics Public and non-profit sector Mixed economy and reasons for public sector existence Scope of poublic sector Public sector functions Alocation function Redistribution function Collective goods Externalities Natural monopoly

Learning activities and teaching methods
Monologic (reading, lecture, briefing), Dialogic (discussion, interview, brainstorming), Work with text (with textbook, with book), Methods of individual activities
  • Participation in classes - 26 hours per semester
  • Contact teaching - 13 hours per semester
  • Preparation for a partial test - 10 hours per semester
  • Preparation for a final test - 10 hours per semester
  • Preparation for an exam - 20 hours per semester
  • Term paper - 30 hours per semester
  • Home preparation for classes - 41 hours per semester
  • Writing a seminar paper - 30 hours per semester
Learning outcomes
The aim of the course is to acquaint students with basic issues and problems of public economics and economy and to create theoretical base for further follow-up disciplines, especially public finance of public sector. Students will be able to solve partial problems of public economics, they will: - understand causes and effects of particular public economic processes and; - know how to select and apply adequate methods when solving selected problems of public economics and economy. Students will obtain the knowledge how to defend these methods in discussions.
A student who has successfully completed the course can: to indicate the importance of collective action to society; describe and the benefits of collective action and justify the consequences of its absence; to characterize public economics and describe its relations with other disciplines; enumerate ways of measuring the size of the public sector and explain the consequences of different public sector sizes; describe the allocation function and explain its essence using the principles of general and partial equilibrium; explain the principle of natural monopoly. A student who has successfully completed the course can: to list the basic divisions of the public sector according to needs and explain their importance; to justify the existence of a public sector through the causes of market failures; describe individual types of collective goods using their main characteristics and describe their effective ways production in economics; describe externalities, enumerate individual species and explain their impact on the effective allocation of scarce resources; describe redistribution principles within redistribution function and explain the essence of stabilization function of the state in economy. The student who has successfully completed the course is able to: decide independently and responsibly in a model situation; summarize comprehensively the possibilities of solving the allocation problem in public economy; to communicate in a clear and convincing way to professionals and lay people information on the nature of professional issues and their own opinion on their solution; acquire additional expertise, skills and competences separately.
Prerequisites
Knowledge of microeconomics - the basic forms of imperfect competition, the basic principles of the functioning of markets and the behavior of market participants are expected.

Assessment methods and criteria
Oral examination, Written examination, Student performance assessment

Closing assignment: assignment test (two parts: middterm at November, 21-25 and test in last week of semester). The students must have more than 60 % from both tests for assignment. Final examination: written, eventually oral.
Recommended literature
  • CONNOLLY, S., MUNRO, A.:. Economics of the Public Sector. Harlow: Prentice Hall, 1999.
  • Howard, M. Public Sector Economics For Developing Countries. Dilli: University of West Indies Press, 2015..
  • Stiglitz, J. E. Economics of the Public Sector. New York: W. W. Norton & Company, 2010..
  • Tresch, R. W. Public Sector Economics. London: Macmillan International Higher Education, 2014..


Study plans that include the course
Faculty Study plan (Version) Category of Branch/Specialization Recommended year of study Recommended semester