The course will analyse the activities of the public sector from the perspective of taxation and government expenditure. Topics to be covered are: concepts and system of taxation, taxation system in Malaysia, principles of taxation, tax incidence, empirical analysis and the weakness of the empirical analysis, tax burden (of export tax, import tax and the tax burden on the poor) and the effect of tax incentives. Topics to be covered under the government expenditures are: various concepts of the growth of government expenditure, Malaysian government expenditure, types of expenditure and its effect.



References:



1. Rosen, H.S. (2005). Public Finance. (7th Edition). Boston: McGraw Hill.

2. Hyman, D.H. (2005). Public Finance. (8th Edition). Ohio: Thomson Learning.

3. Stiglitz, J.E. (1999). Economics of the Public Sector. (3rd Edition). New York: Norton.