-Theory of Public Goods and Externalities

Characteristics of public goods, Public goods, and merit goods compared Pareto efficient conditions in the presence of public goods, Efficiency conditions for private and public goods, Private provision of public goods, Externality and public sector Intervention
– Introduction to public choice Theory
The concept of government failure, Voting rules and resource allocation, Participants in political process, Public choice theory and the size of government, Public production and bureaucracy
– Principles of Expenditure Analysis
Allocative and distributive effects, Linkages between expenditure and taxes, Fixed quantity subsidy versus excise subsidy, Pure theory of public expenditure (marginal utility approach, voluntary exchange model, and General equilibrium model).
– Government and Income Transfer Instruments
Arguments for and against redistribution by government, Government expenditure policies affecting income redistribution, Ways of addressing the equality- efficiency trade off.
– Applied Expenditure Analysis-Education, Health Care, Social security.
Alternative mechanism to subsidize education and their economic effects, Medical care and the problem of moral hazard, The role of government in financing medical care, Alternative financing mechanisms for social security, Effects of social security on saving and work effort, Equity and social adequacy aspects of social security.
– Principles of Tax Analysis
Taxonomy of taxes, Desirable characteristics of any system, General factors affecting incidence of various taxes, Partial versus general equilibrium analysis of incidence of taxation, The concept of welfare cost of taxation, Measuring the welfare cost of taxation.
– Analysis of Economic Effects of the Tax System
Taxation and income distribution, Effects of taxes on labour supply, Effects of taxes on saving investments and risk taking, Income versus Consumption taxes, Incidence of tax
– Fiscal System in Bangladesh
Structure of tax revenue and non tax revenue , Elasticity and buoyancy of tax system, Pattern of current expenditure, Pattern of development expenditure, Expenditure on human resource development and poverty alleviation sector, Fiscal constraint and vulnerability of development expenditure, Sustainability of fiscal deficit, Value added tax system in Bangladesh, Fiscal Incidence
– Balanced budget and Fiscal Policy
Arguments for and against balanced budget, The balanced budget multiplier, Fiscal policy and stability
– Public Debt
Public and private debt, Limits to raising public debt, Public debt and economic growth, Public debt and inflation, Public debt and taxation, Debt redemption and debt management

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Rosen H.S. Public Finance 2nd edition RD Irwin, 1988
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Musgrave, R.A. The Theory of public finance: A Study in Public Economics, 1959.
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