Introduction: role of government in a market economy; Basic tools: indirect utility function, compensating and equivalent variation, consumer surplus; Public good: two welfare theorems in presence of exchange and production economy, public good provision a la Samuelson, club goods and local public goods, private provision of public goods, free riding, Vickrey-Clarke-Groves mechanism; Principles of taxation, basic concepts, optimal income and commodity taxation; Political economy: median voter, probabilistic voting and citizen candidate models; Fiscal federalism, economic rationale of sub-national entities, grants and transfers, tax competition and harmonization, the recent GST debate; Fiscal deficit and debt dynamics, intergenerational issues.
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J. Hindriks and G. Myles, Intermediate Public Economics, Prentice Hall, 2007.^$^G. Myles, Public Economics, CUP, 1995^$^T Perrson and G Tabellini, Political Economics, MIT Press, 2002^$^D.K. Srivastava, Issues in Indian Public Finance, New Century Publications, 2005
