İKT396

School of Economics and Administrative Sciences \ Economics

3

6

Elective

English

İKT 233

Economics

This course is designed to familiarize the students with key issues in applied public
economics with the objective of connecting theory to fiscal policy implementation. Topics
include (a) the economic basis for government activity, (b) fiscal functions of government,
and (c) fiscal policy in Turkey.

Gruber, J. (2010) “Public Finance and Public Policy” Worth Publishers 3rd edition
Hyman, D. N. (2014) “Public Finance: A Contemporary Application of Theory to Policy”
Cengage Learning, 11th edition
Ulbrich, H.H. (2011) “Public Finance in Theory and Practice” Routledge, 2nd edition

1. To provide students with a comprehensive understanding of the theoretical foundations and practical applications of public economics, focusing on the role of government in economic activities.
2. To analyze fiscal functions such as taxation, public expenditure, and debt management, and evaluate their impact on economic performance and income distribution.
3. To examine Turkey’s fiscal policy framework, including budgetary processes, public financial management, and the interaction between fiscal and monetary policies.

1. Students will be able to critically assess the economic rationale for government intervention and the provision of public goods.
2. Students will develop analytical skills to evaluate the effects of fiscal policies on economic growth, stability, and income distribution.
3. Students will gain insights into Turkey’s fiscal policy system and apply theoretical knowledge to real-world policy challenges.

Week 1: Economic basis for government activity - Individuals and the government / The size and the scope of government
Week 2: Economic basis for government activity - Public goods and decision-making in the public sector
Week 3: Fiscal functions of government - fiscal policy and effects on the economy / government expenditures, subsidies and social benefits
Week 4: Fiscal functions of government - taxation and distribution of income / budget balance and government debt
Week 5: Turkish fiscal policy and system - the legal and institutional framework of fiscal management
Week 6: Turkish fiscal policy and system - budgetary process and the governance of the budget system
Week 7: Turkish fiscal policy and system - budgetary process and the governance of the budget system
Week 8: Turkish fiscal policy and system - analysis of expenditure policy: health and education
Week 9: Turkish fiscal policy and system - analysis of expenditure policy: health and education
Week 10: Turkish fiscal policy and system - typologies of the tax system
Week 11: Turkish fiscal policy and system - typologies of the tax system
Week 12: Turkish fiscal policy and system - debt management and coordination with monetary policy

• Midterm 40 %
• Final 60 %