Faculty of Business and Economics

Postgraduate - Unit

This unit entry is for students who completed this unit in 2012 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

FacultyFaculty of Business and Economics
OfferedClayton First semester 2012 (Day)
Australia (Other) Second semester 2012 (Off-campus block of classes)
Coordinator(s)Professor Ranjan Ray


The unit concentrates on the revenue raising role of government and the relationship between public and private sectors from perspective of both public finance and political economy. Theories of public expenditure and revenue generation are applied to assess proper scope of the public sector and to design efficient, equitable and practical tax structures. Theories of public choice critically examine effectiveness and decision-making process of the public sector.


The learning goals associated with this unit are to:

  1. apply the basic economic concepts and principles to public finance issues
  2. critically analyse contemporary policy issues facing the Australian Treasury in the area of public expenditure and taxation from competing perspectives
  3. critically analyse the implications of fiscal policy for labour market and social security outcomes
  4. understand and demonstrate the usefulness and limitations of economic analysis in the public finance area
  5. identify both market failure and government failure, understand the causes and identify real life instances of each.


Within semester assessment: 40%
Examination (2 hours): 60%

Chief examiner(s)

Professor Ranjan Ray

Contact hours

3 hours per week


Students must have passed ECX9000 before undertaking this unit