Aims: The aim of the course is to examine alternative ways by which the allocation of resources within the public sector can be evaluated.
Learning Outcomes:
The learning outcome is that at the end of the course unit students will be able to (i) understand the theoretical basis of techniques such as cost benefit analysis (ii) be able to advise on 'shadow pricing' (iii) be able to assess how well any cost benefit analysis has been carried out (iv) understand how microeconomic theory can be applied to the process of decision making on public expenditure programmes (v) be able to assess the importance of new literature concerning the 'public choice' approach.
Skills:
Analytical skills are facilitated (i.e. skills of value beyond the subject matter), e.g. the use and evaluation of arguments, logical reasoning. Investigative (research) skills and skill in time management are facilitated. An enhanced understanding of economic analysis and skill in presentation is assessed.
Content:
The course unit begins with a review of welfare economics (public expenditure analysis is applied welfare economics). Market failure and the rationale for government intervention is assessed. The impact of alleged $ùfailings&© in the political process is also assessed. The behaviour of voters, political parties, bureaucrats and pressure groups is analysed using microeconomic theory. The growth of the public sector is considered in terms of both market and government failure. Techniques for public sector appraisal are discussed.
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