114-0344/03 – Fiscal Theory and Policy (FTP)

Gurantor departmentDepartment of EconomicsCredits4
Subject guarantordoc. Dr. Ing. Jan LibichSubject version guarantorIng. Tomáš Wroblowský, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory
YearSemesterwinter
Study languageCzech
Year of introduction2011/2012Year of cancellation2013/2014
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
LIB009 doc. Dr. Ing. Jan Libich
MAH11 prof. Ing. Martin Macháček, Ph.D. et Ph.D.
WRO25 Ing. Tomáš Wroblowský, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Graded credit 2+1

Subject aims expressed by acquired skills and competences

Student should be able to: -assess the efficiency of governments fiscal measures -compare the theoretical approaches to fiscal imbalance -estimate the impact of fiscal variables' changes on other macro variables -design measures for improving the situation of public finance

Teaching methods

Lectures
Seminars

Summary

The course provides a comprehensive review of fiscal theory since the end of WWII. It is aimed on fiscal policy efficiency in the neo-Keynesian IS-LM and IS- LM-BP models, attention is also paid to fiscal aspects of new classical macroeconomics and new Keynesian economics. The course also contains topics that are not usually tought in intermediate courses of macroeconomics. These are, for example, the Ricardian equivalence theorem, fiscal federalism or fiscal theory of price level.

Compulsory literature:

Hansen, B. The economic theory of fiscal policy London : Routledge, 2003 Izák, V. Fiscal policy : intermediate course. Praha : Oeconomica, 2009 - 150 s.

Recommended literature:

Buti, Marco; Von Hagen, Jurgen; Martinez-Mongay, Carlos. The Behaviour of Fiscal Authorities: Stabilization, Growth and Institutions. New York: Palgrave, 2002. 304 s. ISBN 0-333-98495-1

Way of continuous check of knowledge in the course of semester

Students have to prepare for the seminars. They must write thir homework papers, which are then discussed within seminars.

E-learning

Další požadavky na studenta

There are no additional requirements.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. FISCAL POLICY IN CLOSED ECONOMY – THE IS-LM ANALYSIS - Crowding-out effect of government purchases - Fiscal policy multiplier - Interaction of monetary and fiscal policy in the IS-LM model 2. FISCAL POLICY IN OPEN ECONOMY – THE IS-LM-BP ANALYSIS - Efficiency of fiscal policy in alternative exchange rate regimes - Efficiency of fiscal policy in alternative levels of capital mobility 3. BUDGET DEFICIT AND ITS MEASUREMENT - budget deficit – its possible causes and consequences - Structural and cyclical deficit and their measurement - Alternative measures of fiscal imbalance 4. THEORY OF GOVERNMENT DEBT - Government debt, its causes and consequences - Domestic debt and its consequences. - Foreign debt and its consequences 5. RICARDIAN EQUIVALENCE. - Debt and taxes as equivalent methods of financing government expenditures - Permanent income – life cycle hypothesis application, interteporal choice - Ricardian equivalence and economic policy 6. FISCAL ASPECTS OF SUPPLY SIDE ECONOMICS - Theory of incentives (P. C. Roberts). - Theory of Laffer curve - Fiscal experiments in the 80’s (M. Thatcher, R. Reagan) and their results 7. THEORY AND EMPIRY OF FISCAL FEDERALISM - Neokeynesian conception of fiscal federalism (R. Musgrave). - W. Oates‘ approach of fiscal federalism - Fiscal policy in integrating Europe (EU, EMU). 8. INTERACTION OF MONETARY AND FISCAL POLICY. - Fiscal aspects of monetary policy - Seigniorage as a source of budget revenues - Intertemporal budget constraint and „weak version“ of fiscal theory of price level 9. LONG-RUN SUSTAINABILITY OF PUBLIC FINANCE - Demographic changes and fiscal sustainability - Role of mandatory expenditures in public finance

Conditions for subject completion

Full-time form (validity from: 2011/2012 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Graded exercises evaluation Graded credit 100 (100) 51
        Obhajoba seminární práce Other task type 80  0
        Práce v průběhu semestru Other task type 20  6
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2013/2014 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6208) Economics and Management (6202T049) Accounting and Taxes (00) Účetnictví a daně P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T027) National Economy P Czech Ostrava Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T095) Economics and Law in Journalism P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T027) National Economy (00) National Economy P Czech Ostrava Choice-compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T027) National Economy (00) National Economy P Czech Ostrava Choice-compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T095) Economics and Law in Journalism P Czech Ostrava 1 Choice-compulsory study plan
2012/2013 (N6208) Economics and Management (6202T049) Accounting and Taxes (00) Účetnictví a daně P Czech Ostrava 1 Choice-compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Choice-compulsory study plan
2011/2012 (N6208) Economics and Management (6202T049) Accounting and Taxes (00) Účetnictví a daně P Czech Ostrava 1 Choice-compulsory study plan
2011/2012 (N6202) Economic Policy and Administration (6202T027) National Economy (00) National Economy P Czech Ostrava Choice-compulsory study plan
2011/2012 (N6202) Economic Policy and Administration (6202T095) Economics and Law in Journalism P Czech Ostrava 1 Choice-compulsory study plan
2011/2012 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Choice-compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner