Public sector in a mixed economy: market failure, the economic rationale of government intervention, public goods and publicly provided private goods, merit goods, public choice; Public sector expenditure: externalities, income redistribution and expenditure programmes, healthcare, social security, cost-benefit analysis; Public sector revenue: tax incidence, efficiency and equity issues, the Indian tax system, tax reforms; Fiscal federalism: fiscal principles and concepts, fiscal institutions; Fiscal policy and economic stabilization: fiscal instruments, deficit and surplus budget, public sector debt, internal and external debt, symmetrical and asymmetrical debt, debt management.
Texts:
1. J. Stiglitz, Economics of the Public Sector, W. W. Norton and Company, 2000
2. B. P. Herber, Modern Public Finance, A.I.T.B.S. Publishers, Indian reprint, 1999
References:
1. A. Bagchi (edited), Readings in Public Finance, Oxford University Press, 2005
2. R. A. Musgrave, P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill International, Fifth edition, 1989
