Outline of Public finance
1. Introduction to Public Finance
1.1 Roles Governments in market economies
- Roles of govt
- Define public finance
- Positive vs normative
1.2 Different views of government
2.1 Efficiency in General Equil
Lecture 3 Externalities
- costs/benefits incurred by the third parties that are not reflected on the price.
- To check externalities:
o Check if there are any indirect effects.
o Check if these effects go through the price system.
- Causes M
Cost benefit analysis: a set of procedures based on welfare economics for guiding public expenditure
The value today of a given amount of money to be paid or received in the future.
Discount rate is the rate of interest used to co