İKT431

School of Economics and Administrative Sciences \ Economics

3

6

Elective

English

İKT 233

Economics

The main objective of Public Finance course is to develop students’ analytical understanding and gain new perspectives in the public finance field. In this context, we focus on the government’s role in the economy, its expenditures and incomes, taxation systems, borrowings, budgeting process, strategic management in public institutions, local authority’s incomes and expenditures. The course covers a theoretical analysis of public finance issues in the economy and deals with debates and implementations of a range of public sector issues. Thus, we discuss the existing situation and review data for public finance in Turkey and other economies. During the course, we also focus on the strategic management process in the Turkish public sector to better understand notions such as productivity, efficiency, accountability, and transparency.

Hyman, D. "Public Finance: A Contemporary Application of Theory to Policy." (2005).

By the end of this course, students are expected to describe the main components and functions of
public expenditure, taxation, borrowing, budgeting, local administrations, etc., have a better understanding of theory and implementation on public finance, be familiar with public finance figures and announcements.

1. Students will be able to define fundamental topics such as public expenditures, taxation, borrowing, and budgeting.
2. Students will be able to analyze and compare public finance theory and its applications.
3. Students will gain knowledge about Turkey's public finance practices and strategic management.

1st Week: Introduction to public finance: general concept and principles of public finance, government intervention, externalities, public goods, public services.
2nd Week: Introduction to public finance: general concept and principles of public finance, government intervention, externalities, public goods, public services.
3rd Week: Public Expenditures: purpose, functions, characteristics, and consequences of expenditures and Turkey Case
4th Week: Government Borrowings and Debt: internal and external borrowings, debt stock, debt sustainability, debt instruments and Turkey Case
5th Week: Budgeting: Budgeting content, principles, processes, implementation, and control mechanism of Budgeting
6th Week: Public finance in Turkey: historical background, public sector structural reforms, leading institutions in Turkish fiscal management.
7th Week: Review of the topics learned and Midterm Exam
8th Week: Taxation: basic concepts of tax theory, direct and indirect taxes, other revenues, distribution of income
9th Week: Taxation in Turkey: analysis of the existing practice
10th Week: Local Administrations: the existing structure, incomes, expenditures
11th Week: Strategic management in the Turkish Public Sector
12th Week: Review of the topics learned and Final Exam

Midterm 30 %
Final Exam 40 %
Assignment 1 7,5 %
Assignment 2 7,5 %
Participation 15 %