MAB665 - BEHAVIOURAL PUBLIC FINANCE

Course Name Code Semester Theory
(hours/week)		 Application
(hours/week)		 Credit ECTS
BEHAVIOURAL PUBLIC FINANCE MAB665 2nd Semester 3 0 3 6
PrequisitesNone
Course languageTurkish
Course typeElective 
Mode of DeliveryFace-to-Face 
Learning and teaching strategiesLecture
Discussion
 
Instructor (s)Department Staff 
Course objectiveThe public sector aims to increase social welfare. The inadequacy of the arrangements prepared from the mainstream economic perspective in achieving the expected results led to the development of a different perspective. Within this framework, policymakers and scientists working in the field have started to use alternative tools. So behavioural public finances have come to the forefront. The constitution of public finance policies taking into account individual attitudes and behaviours will contribute to harmonization of objectives and results. 
Learning outcomes
  1. When the course is completed, the student are expected
  2. To understand the shortcomings of the basic assumptions of mainstream economics,
  3. to have knowledge about behavioural economics methodology,
  4. to be able to analyse the consequences of decision-making processes,
  5. to be able to examine tax reforms from the behavioural public finance perspective,
  6. to assess whether the political objectives and the outputs realized overlap,
  7. to contribute to the public finance literature by their original works, which are interdisciplinary produced.
Course ContentWithin the content of the lecture, primarily, the concept of bounded rationality will be discussed. For this purpose, cognitive heuristics and biases will be emphasized. Then behavioural public finance practices will be examined. Additionally, the relationship between the specified objectives and the outputs realized will be revealed. At the end of the semester, projects, which examine public finance within the framework of behavioural perspective will be carried by students. 
ReferencesAkdere, Ç. ve Büyükboyacı, M. (2015). Davranışsal İktisat ve Sınırlı Rasyonellik Varsayımı. D. Dumludağ, Ö. Gökdemir, L. Neyse, ve E. Ruben içinde, İktisatta Davranışsal Yaklaşımlar (s. 105-137). Ankara: İmge Kitabevi Yayınları.
Allingham, M. G. ve Sandmo, A. (1972). Income Tax Evasion: A Theoretical Analysis. Journal of Public Economic, 1 (3-4), 323-338.
Alm, J. ve Bourdeaux, C. J. (2013). Applying Behavioral Economics to the Public Sector. Hacienda Pública Española / Review of Public Economics, 91-134.
Camerer, C. F. ve Loewenstein, G. (2004). Behavioral Economics: Past, Present, Future. C. F. Camerer, G. Loewenstein ve M. Rabin içinde, Advances in Behavioral Economics (s. 2-51). New York: Princeton University Press.
Congdon, W. J., Kling, J. R. ve Mullainathan, S. (2011). Policy and Choice Public Finance through the Lens of Behavioral Economics. Washington D.C.: Brookings Institution Press.
Kahneman, D. (2011). Thinking, Fast and Slow. London: Penguins Books.
Kahneman, D. ve Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47 (2), 263-291.
NadaroÄŸlu, H. (1992). Kamu Maliyesi Teorisi. Ä°stanbul: Beta Basım Yayın Dağıtım. 

Course outline weekly

WeeksTopics
Week 1Introduction to the course: Extent, scope and key concepts
Week 2Bounded rationality
Week 3Prospect theory
Week 4Heuristics
Week 5Cognitive bias
Week 6Methodology of behavioural economics
Week 7Theoretical foundations of behavioural public finance
Week 8Midterm
Week 9Tax compliance
Week 10Fiscal illusion
Week 11Utility and political process
Week 12Policy development from the perspective of behavioural economics
Week 13Criticism of behavioural public finance
Week 14Preparation for Final exam
Week 15Final exam

Assesment methods

Course activitiesNumberPercentage
Attendance00
Laboratory00
Application00
Field activities00
Specific practical training00
Assignments00
Presentation110
Project110
Seminar00
Midterms120
Final exam160
Total100
Percentage of semester activities contributing grade succes340
Percentage of final exam contributing grade succes160
Total100

WORKLOAD AND ECTS CALCULATION

Activities Number Duration (hour) Total Work Load
Course Duration (x14) 14 3 42
Laboratory 0 0 0
Application000
Specific practical training000
Field activities000
Study Hours Out of Class (Preliminary work, reinforcement, ect)14342
Presentation / Seminar Preparation11818
Project11818
Homework assignment000
Midterms (Study duration)13030
Final Exam (Study duration) 13030
Total Workload32102180

Matrix Of The Course Learning Outcomes Versus Program Outcomes

D.9. Key Learning OutcomesContrubition level*
12345
1. The student deepens the knowledge acquired at the undergraduate level in its own field or in a different field, and explains the interaction between fields.    X
2. The student has knowledge and interpretation skills about economic and fiscal phases of societies and relations between societies.   X 
3. The student has researching, planning and realization skills which are necessary for his/her field.    X
4. The student has the knowledge he/she must reach by processing data, at a theoretical level.   X 
5. The student can solve a problem in his/her field as an individual and within a team, being aware of leadership responsibility.    X
6. The student can prepare reports and works in accordance with academic rules in the light of the knowledge he/she acquired in his/her field.    X
7. For problems he/she identified in his/her field, he/she makes suggestions of solution and/or solutions by using researh methods.    X
8. . The student can direct his/her education to a higher education program or a professÅŸon in his/her field.    X
9. The student is aware of the cotinuity of education and learning. He/she has a open attitude towards change and innovation.    X
10. The student can transfer fundamental knowledge he/she has in his/her field in a written and spoken manner to interested parties.   X 
11. The student has the sufficient level of awareness of social rights, social justice, quality and cultural values environment protection, business health and security.   X 

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest