Course: Selected Topics in the Public Sector Economics

Code: 3ФЕИТ11004

ECTS points: 6 ECTS

Number of classes per week: 3+0+0+3

Lecturer: Prof. Dr. Vladimir Filipovski, Prof. Dr.Taki Fiti

Course Goals (acquired competencies): Understanding the essential features and the functioning of the public sector; understanding the key domains of market failures, and consequently the need for government regulation of market failures. A special emphasis is put on the regulation of natural monopolies and other types (commercial) monopolies.

Course Syllabus:

1. Fundamentals of market economy – demand, supply and price

2. Fundamentals of theory of production and costs

3. Market structures – perfect and imperfect competition

4. Market failures

5. Natural monopoly – the essence of the concept and its economic consequences

6. Regulation of natural monopolies

7. Taming the monopoly power – combination of government regulation and market forces

8. Regulation of other types of market failures – public goods, externalities and etc.

Literature:

Required Literature
No.	Author	Title	Publisher	Year
1	Joseph Stiglitz	Economics of the public sector	Табернакул	2009
2	Taki Fiti	New microeconomics and government regulation	Економски факултет Скопје	2009
Additional Literature
No.	Author	Title	Publisher	Year
1	N. Gregory Mankiw	Principles of Economics	Thompson Higher Education	2007
2	Dennis W. Carlton, Jeffrey M. Perloff	Modern Industrial Organization (4th International Edition)	Addison Wesley	2005