KTCC. Chapter 1. Day 01. Introduction.pdf

Slide giới thiệu môn KTCC bằng Tiếng Anh

1. LOGO
PUBLIC ECONOMICS
Department of Public Economics,
Faculty of Planning and Development,
National Economics University in Hanoi

2. Course objectives
Explain the role of the state and the scope for the government
interventionin the market economy
Analyze decision making mechanismin the public sector; and
Understand economic policy instrumentsto interfere in the
economy
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3. Learning Objectives
Students are able to:
argue if a certain government intervention is
justifiable from the lens of efficiency and equity.
shape his (her) own approach to analyze a
typical public policy.
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4. Key questions to be addressed
Whenshould the government interfere in the economy? Which
areas should be delegated to non- public sector?
Howshould the government interfere and with which
instruments? Strengths and weaknesses of government
interventions from equity and efficiency perspectives?
How difficult can a public decision be made and why?
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5. Course structure
Chapter 1: Overview on the role of the state in the market
economy and introduction of the Public Economics Course
Chapter 2: Economic efficiency and the government’s re-
allocative function
Chapter 3: Social equity and the government’s redistributive
function
Chapter 4: The government’s macroeconomic stabilization
function in the context of globalization
Chapter 5: Public choice
Chapter 6: Economic policy instruments for the government to
intervene in the market economy
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6. Student Evaluation
Participation:10%
Mid-term exam 01 :15%
Mid-term exam 02 :15%
Final Examination:60%
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7. Day 01
Introduction to the public sector
and public economics
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8. LOGO
PUBLIC ECONOMICS
CHAPTER 1
OVERVIEW ON THE ROLE OF THE STATE IN THE MARKET
ECONOMY AND INTRODUCTION OF THE PUBLIC
ECONOMICS COURSE

9. Chapter outline
Government and evolution on perception over the
government.
Government in the economic circle.
Why invisible hand of the market cannot always
provide socially desired outcomes.
Government interventions and limitations.
Course targets and learning approach.
Readings:
1.Public Economics (Student Book, Ch. 1- 4)
2.Kinh tế Công cộng (Text book, Ch. 1 + Appendix)
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10. 1. Overview of the role of the government
1.1. Public sector, state and government
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Public Sector
General Government
Legislative
National
Assembly
People’s
Council
Executive
Cabinet
(Government)
People’s
Committee
Justice
Central
Local
Public Enterprises
Financial
Public Ent.
Monetary
Enterprise
Non-monetary
Enterprise
Non-financial
Public Ent.
What is public sector?

11. 1.2. Government in the Economic Circle
Output market
(Goods and
Services)
Household
Firm
Factor
market
(Input)
[1] L, K
[1] L, K
[2] $
[2] $
[4] $ [4] $
[3] Goods/services [3] Goods/services
Without government
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12. Government in the Economic Circle (2)
[4] $ [4] $
Output
market
(Goods and
Services)
Household Firm
Factor
market
(Input)
[1] L, K
[1] L, K
[2] $
[2] $
[3] Goods/services [3] Goods/services
With government
GOVERNM
ENT
[5] L, K
[6] $
[7] Public
services,
transfer
[8] Taxes and fees
[12] [3] Goods/
services
[11] Taxes and fees
[9] [3] Goods/
services
[10] $
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13. 1.3. Classification of economic organization models
Pure market economy
UK, US
Centrally planned economy
Former Soviet Union and Eastern Europe
block
Mixed economy
Majority of nations in the world
Difference in degree of ‘mixed’
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