Event

The course Municipal Finance addresses the theory and policy of municipal revenues and spending including grants, municipal revenue equalisation, taxation as well as municipal and public enterprises.

At the beginning of the course, fundamental concepts of taxation theory as well as key elements of the German taxation system are introduced. The allocative and distributive effects of different taxation methods are examined thereafter and are combined within the theory of optimal taxation. The following chapter is concerned with municipal borrowing and illustrates ways to acquire additional funding. After addressing the extent, structure and variety of municipal borrowing, macroeconomic theories are introduced and applied to the municipal sector. In the course of this final chapter, special attention will be paid to the long term consequences and the sustainability of municipal borrowing as a means of budgeting.

Learning goals:

The students:

• are familiar with the theory and policy of municipal revenues and spending.
• are able to evaluate the allocative and distributive effects of different kinds of municipal revenues and spending.
• understand the extent, structure and variety of municipal budgeting and are able to assess long term consequences of municipal revenues and spending.

Workload:

The total workload for this course is approximately 135.0 hours. For further information see German version.