This course covers public finance, centered on concerns to state and local governments in the United States. The class will discuss how local government operates, which services it provides and which it should provide, and how the government pays for these services. Since this is a course on finance, there will be a greater emphasis on revenue than on other issues. For each financing issue discussed, students will consider the efficiency, distributional, and political implications. Most of these case studies and memo topics are chosen for their relevance to economic development, but there are also applications in infrastructure, transportation, community development, education finance, and other areas. Topics covered in the class include the following:

• Fiscal Federalism
• Sales and Business Taxes
• Income Taxes
• Industrial Development Bonds
• Bond Markets and Government Corporations
• Tax Increment Financing and Special Districts
• Pricing of Government Goods
• Privatization of Public Services
• Business Improvement Districts
• Income Redistribution and Governmental Grants
• Tax Abatements and Budgetary Impacts
• Paying for Infrastructure in the Nineties
• Capital Budgeting