This course deals with the impact of fiscal policy of government on
the economy. There is separate treatment of state and local government
from that of the Federal government. The impact of Federal fiscal policies
is integrated with the monetary policies of the Federal Reserve. The course
also covers the provision of public and other goods and services
traditionally supplied by the government. Again a distinction is made
between the Federal Government and state and local governments. As a
preliminary to the microeconomics of the public sector a survey is made
of the political bosses who have run some states and cities in the past.
This is to emphasize that in choosing public policy we should not presume
that government is an all-knowing, selfless institution seeking to implement
optimal economic policy.
The Relationship Between Private Profitability
and Net Social Benefit