Public Economy Sector

Study:	Administrative-Economic - 5. semester
Code:	123675
ECTS:	5.0
Course coordinators:	prof. dr. sc. Ivana Bajakić prof. dr. sc. Nenad Rančić
Lecturers:	dr. sc. Sanja Tišma , pred. - Lectures
Exam dates:	13. 06. 2023. 27. 06. 2023. 29. 08. 2023. 12. 09. 2023. Exam registration: Studomat

Literature:
Samuelson, P.A., Nordhavs, W.: Ekonomija, Mate, Zagreb, 1992.; Ekonomija; Mate (1992), str
Optional literature:
Petak. Z; Javna dobra i političko odlučivanje, , Zagreb,; Politička misao (2001), str Vranjican, S; Politička ekonomija, , 2004.; Pravni fakultet, Zagreb (2004), str. 2004 Pusić, E; Upravljanje u suvremenoj državi, , 2002.; Društveno veleučilište, Zagreb (2002), str Bailey, S.J; Public Sector Economics: Theory, Policy and Practice; Palgrave (2002), str Stiglitz, J.E.,; Economics of the Public; Norton, co-New York (2000), str Sliglitz, J.E; Ekonomija javnog sektora,; Ekonomski fakultet, Beograd, (2004), str Murray Horn; The political economy of public administration: Instutional choice in the public sector.; Cambridge (1995), str Assessing the Impacts of Proposed Laws and Regulations, SIGMA Paper No. 13, OCDE/GD(97) 126.; , str Top management service in central government: Introducing a system for the higher civil service in Central and Eastern European Countries, SIGMA Paper No. 1, OCDE/GD(95)45.; , str Kirkpatrick, C., Parker, D., Zhang, YF; Regulatory impact assessment in the developing and transition economies: a survey of current practice and recommendations for further development.; Institute for Development Policy and Management, University of Manchester UK (2003), str

Description:

Introduction: Subject and content of the public sector economy. Correlation between the public sector economy and other economic disciplines. Links to other social sciences (3h)
The role of the public sector. Economic reasons for its existence (market versus state mechanisms of economic co-ordination, individual versus public choice, neo-classical welfare theory) (3h)
Basic economic functions of the state Allocation function, distributive function, stabilisation function, developmental function (2h)
Public spending programmes (public expenditure, methods of the public sector efficiency assessment: cost-benefit analysis, cost-effectiveness analysis, regulatory impact assessment) (3h)
Main areas of public spending (social security, pension funds, health care, education) (3h)
Public choice and political interests. public choice theory. Voters and voting process (3h)
Creation of supply and demand for the public sector - political interests (2h)
Specific functions of the state in the countries in transition. Privatisation within state administration, icreased importance of the public management as a support to economic development (3h)
Support to entrepreneurship and strengthening of the market institutions (2h)
Anticorruption campaigns. Reduction of grey economy (3h)
Closing lecture: Context of the EU accession (3h)

Cognitive Skills:

On the cognitive level students gain knowledge about the manner of making economic and social decisions in the public sector. They can understand how and with what costs decisions are made in the public sector, and how do they affect decision-making in the private sector. They also develop understanding about the most common oroblems and failures in the public sector operation, such as making irrational decisions and reaching inadequate solutions most frequently due to insufficient level of information of participants in the decision-making process, and a frequent phenomenon of illegitimate placement of politics and administration above the interests of citizens and voters.

Students develop intellectual capacities of understanding basic economic categories, the role of the state and market as economic regulators, the position and significance of public sector economy as a discipline within economic sciences, and the connection between this discipline and other social sciences.

Students also develop research abilities, particularly with regard to possibility of privatisation of individual areas of public administration operation, and advatages and challenges in the realisation of such an approach, as well as methods of strengthening market institutions and the influence of this process on reducing corruption and grey economy, especially in the context of the accession of Croatia to the EU.

In the practical sense, students are trained for future employment in administrative departments for economy or entrepreneurship, or financial departments in public administration bodies on the state or local level, in public institutions and legal persons with public powers or in public scientific-research institutes in the area of economics and public finances.

Practical and Generic Skills:

1. Define and describe concept and content of public sector economy;

2. Explain economic reasons for the existence of public sector, and compare and differentiate between market and state mechanisms of economic coordination, individual and public selection;

3. Describe and distinguish four basic economic functions of the state;

4. Explain methods of assessing public sector efficiency with regard to public expenditure programs (cost and benefit analysis, market efficiency analysis, assessment of economic impact of regulations);

5. Name and explain four main areas of public expenditure;

6. Define the postulates of public choice theory, formation of offer and demand for public sector and the role of political interests in making economic decisions;

7. Describe specific functions of the state in countries in transition with regard to strengthening of the doctrine of (new) public management and privatisation within the state administration;

8. Explain, in the context of the accession of Croatia to the EU, the methods of influence of the state on strengthening of entrepreneurship and market institutions on the reduction of corruption and grey economy

Matching Assessments to Learning Outcomes:

Oral examination

Consultations schedule:

prof. dr. sc. Ivana Bajakić:
Tuesday from 1.00 pm
Location: Tkalčićeva 48-50
prof. dr. sc. Nenad Rančić:
Tuesday 1 PM
Location: Tkalčićeva 48-50, room xx

Lecturer in charge	Consultations	Location
prof. dr. sc. Ivana Bajakić	Tuesday from 1.00 pm	Tkalčićeva 48-50
prof. dr. sc. Nenad Rančić	Tuesday 1 PM	Tkalčićeva 48-50, room xx