COURSE UNIT TITLE

: BEHAVIORAL PUBLIC FINANCE

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
MLY 2028 BEHAVIORAL PUBLIC FINANCE ELECTIVE 3 0 0 5

Offered By

Public Finance

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

ASSISTANT PROFESSOR FATMA YAPICI SAPANKAYA

Offered to

Public Finance
Public Finance (Evening)

Course Objective

The aim of the course is to examine the reflections of current developments in behavioral economics on traditional public finance theory and to explain the reasons for the behavior of economic actors in the field of public finance through scientific experiments. Students learn the applications of behavioral economics, which is formed with the contributions of economics and psychology, in the public sector. Within the scope of this course, the psychological effects of other financial instruments that direct individuals, especially taxes, will be explained through behavioral public finance analyses. Another aim of the course is to increase students' knowledge and skills about sociological and psychological factors affecting the success of fiscal policies and to develop their analysis abilities in this field.

Learning Outcomes of the Course Unit

1   1. Learning the areas of interest and methods of behavioral economics and behavioral public finance
2   2. To learn the motivations, cognitive biases and factors that cause deviation from rationality and basic concepts that determine economic behavior
3   3. To learn and explain the effects of guiding public policies on consumer behavior
4   4. To learn and explain the preferences for public expenditures from the perspective of behavioral economics
5   5. To learn and explain the effects of tax practices which have purpose to engender behaviors on taxpayers
6   6. To learn and explain behavioral models for tax compliance

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 1. week Subject, Scope and Development of Behavioral Economics
2 2. week Introduction to Behavioral Public Finance
3 3. week Altruism, Justice, Reciprocity, Shame, Values, Preferences, Choices as Behavioral Motives
4 4. week Intrinsic and Extrinsic Motivation, Beliefs, Intuitions, Deviations in Determining Behavior
5 5. week Decision Making Under Risk and Uncertainty, Mental Accounting, Intertemporal Choice
6 6. week Behavioral Public Policies
7 7. week Public Expenditures and Public Goods from the Perspective of Behavioral Economics
8 8. week Behavioral Models for Taxes
9 9. week Behavioral Models in Private Pension, Behavioral Models in Obesity Economy
10 10. week Nudge Theory
11 11. week Behavioral Game Theory
12 12. week Public Goods Experiments
13 13. week Tax Compliance and Tax Incidence Experiments
14 14. week Discussion of Related Issues and General Evaluation

Recomended or Required Reading

Didinmez, I. (2018). Davranışsal Iktisat Perspektifinden Vergi Uyum Analizi, Savaş Kitabevi.
Tepeler, M. I.& Akan, Y. (2023). Davranışsal Iktisadın Gelişimine Tarihsel Bir Bakış. Anasay 26, 64- 77.
Chetty, Raj (2015). Behavioral Economics and Public Policy: A Pragmatic Perspective. American Economic Review Papers and Proceedings 105(5), 1-33.
Döring, T. & Oehmke, R. D. (2020). Behavioral Economics and Government Purchases Some Insights into the Fiscal Psychology of Public Expenditure. International Journal of Public Finance, 5(1), 56-80.

Planned Learning Activities and Teaching Methods

To be announced.

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 MTEG MIDTERM GRADE MTEG * 1
3 FIN FINAL EXAM
4 FCGR FINAL COURSE GRADE MTEG * 0.40 + FIN * 0.60
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTEG * 0.40 + RST * 0.60


Further Notes About Assessment Methods

None

Assessment Criteria

To be announced.

Language of Instruction

Turkish

Course Policies and Rules

The course will be discussed theoretically and the topics will be covered with the help of both lectures and slides and will be supported with discussions and evaluations as the topics are up-to-date.

Contact Details for the Lecturer(s)

fatma.yapici@deu.edu.tr

Office Hours

Wednedsay 11:00-12:00 am. Office no: 527

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 14 3 42
Preparations before/after weekly lectures 12 5 60
Preparation for midterm exam 9 1 9
Preparation for final exam 12 1 12
Midterm 1 1 1
Final 1 1 1
TOTAL WORKLOAD (hours) 125

Contribution of Learning Outcomes to Programme Outcomes

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