Information Package / Course Catalogue
Public Economy
Course Code: MLİ259
Course Type: Non Departmental Elective
Couse Group: Short Cycle (Associate's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 4
Objectives of the Course

To acquire the theoretical foundations of public economics, the ability to analyze public spending and taxation processes, welfare state reserves, and fiscal policies as economic assets.

Course Content

This course examines the theoretical foundations of public economics and the role of the state within the economic system, within the framework of welfare economics. The course analyzes the economic justifications for state intervention by addressing issues such as market failures, public goods, externalities, and income distribution. In addition, theories of public expenditure and taxation, optimal tax approaches, fiscal federalism, public borrowing, and welfare state practices are evaluated in their theoretical and practical dimensions. At the end of the course, public choice theory and current debates in public economics are discussed, and the economic and institutional consequences of state intervention are analyzed from a holistic perspective.

Name of Lecturer(s)
Ins. Sabiha KEMİKSİZOĞLU
Learning Outcomes
1.To be able to explain the theoretical foundations of public economics.
2.To be able to analyze theories of public spending and taxation.
3.To be able to discuss the economic justifications for state intervention.
4.To be able to evaluate the economic effects of the welfare state and social policies.
5.To be able to interpret the macroeconomic consequences of fiscal policies.
Recommended or Required Reading
1.Kirmanoğlu, H. (2021). Public economy analysis, Istanbul: Beta Publications.
2.Akdoğan, M. (2021). Tax Theory. Ankara: Seçkin Yayıncılık.
3.Karabacak, R. (2019). Kamu Gelirleri ve Vergileme Teknikleri. Bursa: Ekin Yayınevi.
4.Bulutoğlu, K. (2008), “Introduction to Public Economics”, Maliye ve Hukuk Yayınları.
Weekly Detailed Course Contents
Week 1 - Theoretical
Introduction to Public Economics: Definition and scope of public economics, Market economy and the public sector, Historical development of public economics.
Week 2 - Theoretical
The Role of the State in the Economy: State functions, Normative and positive public economics, Its relationship with welfare economics.
Week 3 - Theoretical
Market Failures: Externalities, Asymmetric Information, Natural Monopolies
Week 4 - Theoretical
Public Goods Theory: Pure public goods, Samuelson's condition, free-riding problem
Week 5 - Theoretical
Theoretical Foundations of Government Expenditure: Classification of government expenditures, Wagner's Law, Peacock–Wiseman hypothesis.
Week 6 - Theoretical
Economic Effects of Government Spending: Growth and government spending, Productivity and efficiency debates, Social spending and income distribution.
Week 7 - Theoretical
Introduction to Tax Theory: Definition and characteristics of tax, Types of tax, Principles of taxation (fairness, efficiency)
Week 8 - Theoretical
Tax Burden and Tax Incidence: Tax burden analysis, Partial and general equilibrium approach, Introduction to optimal tax theory.
Week 9 - Theoretical
Optimal Tax Theory: Ramsey taxation, Mirrlees model, modern optimal tax debates
Week 10 - Theoretical
Local Public Economics: Fiscal federalism theory, Tiebout model, Local public goods
Week 11 - Theoretical
Public Debt and Budget Policy: Theoretical foundations of public debt, the Ricardian equivalence hypothesis, the effects of budget deficits.
Week 12 - Theoretical
Welfare State and Social Security: Welfare state models, social security systems, income distribution and poverty policies.
Week 13 - Theoretical
Public Choice Theory: Economic analysis in the political process, Bureaucracy theory, Voting models.
Week 14 - Theoretical
Current Debates and General Assessment: Globalization and public finance, Digital economy and taxation, Climate policies and public economics.
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory1142842
Lecture - Practice122830
Midterm Examination1718
Final Examination114620
TOTAL WORKLOAD (hours)100
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
OÇ-1
4
2
4
3
4
3
2
3
4
3
OÇ-2
2
3
4
3
2
3
2
5
4
3
OÇ-3
4
3
4
3
4
2
4
3
4
3
OÇ-4
3
4
2
4
3
4
2
4
3
4
OÇ-5
4
3
4
2
4
3
4
3
4
3
Adnan Menderes University - Information Package / Course Catalogue
2026