This course provides both theoretical and practical background in the area of public economics for graduate students in economics, public administration and public finance. The objectives of it are to study the government functions, public goods, externalities, optimal size of the government, and rationale for government economic activity, political decision making process, income redistribution, public sector pricing and Optimal Taxation. This course includes analysis of the voting models of allocation.

Historical development of the Turkish tax system. Structure of the tax system, the principles of taxation and Turkish Tax System. the sources of the Turkish tax legislation, procedures of taxation, tax laws and applications in Turkey and Turkish Tax Administration. Taxes based on income, taxes based on expenditures, taxes based on wealth and transfer of wealth, elasticity of the tax system and tax burden.