UVSSPUP019 Public Economics

Faculty of Public Policies in Opava
Winter 2026
Extent and Intensity
2/0/0. 5 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Pavel Tuleja, Ph.D. (lecturer)
Guaranteed by
doc. Ing. Pavel Tuleja, Ph.D.
Institute of Public Administration and Social Policy – Faculty of Public Policies in Opava
Contact Person: Ing. Lucie Wedlich Kamrádová, Ph.D.
Timetable
Tue 13:55–15:30 C204
Prerequisites
  • Basic knowledge of economics: The student should understand basic micro- and macroeconomic principles.
  • Interest in public administration issues: A basic understanding of the institutional framework of public administration and public policy is assumed.
  • Ability to work with legal texts and documents: The student should be able to navigate the basic legislative documents related to the public sector.
  • Analytical and critical thinking: The student should be able to evaluate the effectiveness and efficiency of public measures from an economic and social perspective.
  • Independence and ability to work independently with the literature: The student should be prepared to independently study recommended sources and actively participate in the classroom.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
The course introduces students on the bachelor's degree programme in Social Work in Public Administration to the fundamentals of public economics and develops their ability to understand and analyse relationships between the public sector, public policy, and public administration. Students will gain an overview of the theoretical foundations of public economics, learn to distinguish between the public sector and the civil society sector, and understand the role of public finance and public policy instruments. Emphasis will be placed on the practical application of knowledge, including familiarity with instruments such as public procurement, public investment, state aid, concessions, access to public information, and public oversight. On completion, students will be able to assess the efficiency of public institutions, assess whether economic instruments are suitable for purpose, and apply the relevant legal framework in the context of public administration.
Learning outcomes
  • Understanding the basic principles of public economics: Students will be able to define public economics and explain its relationship to public administration and public finance.
  • Distinguishing between sectors: Students will be able to distinguish between the public sector and the civil society sector, including their functions and instruments.
  • Analysing economic instruments: Students will learn to identify and evaluate instruments used in the public economy, such as public procurement, investment, state aid, and concessions.
  • Evaluating efficiency: Students will be able to analyse the financial management of public institutions and assess their efficiency and effectiveness in the context of public policy.
  • Applying the legal framework: Students will develop the ability to navigate the main laws that govern the public sector and apply them to specific situations.
  • Critically evaluating public interventions: Students will be able to reflect on the effects of public policy and economic measures on different sections of society.
  • Preparation for further study: The knowledge acquired will provide a foundation for subsequent courses with an economic focus.
Syllabus

  • Definition and structure of the public sector: Public economics as a branch of economics. Other academic disciplines and their relationship to public economics. Public Economics and Fundamental Economic Questions. The public and non-profit sectors within the structure of the national economy. Classification by industry, sector, location, ownership, and method of financing. Subdivisions of the public sector. The public sector and categories of needs. Classification of the public sector by the needs it serves. The triangular model of the national economy.

  • The mixed economy and market failure: The mixed economy. Defining the mixed economy. The market economy. Reasons for the existence of the public sector. Microeconomic reasons for the existence of the public sector. Macroeconomic reasons for the existence of the public sector. Non-economic reasons for the existence of the public sector.
  • Public goods and externalities: Public goods. Classification of goods and their characteristics. Economic criteria for classifying goods. The free-rider problem, congestion effects, and ways of preventing them. Public goods and the public sector. Methods of providing public goods. Externalities. Definition of the concept. Classification of externalities. Addressing externalities.
  • The limits of government intervention and bureaucracy: The relationship between market failure and government failure. Government intervention in the economy. Failures of government intervention. The relationship between efficiency and equity. Difficulties in accurately predicting the consequences of government intervention. Limited scope for oversight during the implementation of government interventions. Bureaucracy. The problem of indicators. Difficulties in modelling economic and social processes. Disagreement among economists. The nature of political processes and collective decision-making. Failures inherent in decentralised systems. Failure to use political capital. The concurrent operation of the market, the public sector and the private non-profit sector.
  • Redistribution and the welfare state: Distribution theory. The functional distribution of income. The personal distribution of income. The distribution of wealth. Issues of equality and inequality, justice, and injustice. Defining the welfare state.
  • The stabilisation function of government: Defining economic equilibrium. The development of equilibrium theory. Basic models of equilibrium theory. Countercyclical government policy. Debates on the business cycle. The phases of the business cycle. Countercyclical policy.
  • Principles and instruments of public sector operation: The main characteristics of the public sector. The public sector and public policy. The mission, functions, and activities of the public sector. The size and structure of the public sector. Indicators describing the size and structure of the public sector. Factors that affect the size and structure of the public sector. Economic instruments used in the public sector.
  • Public choice theory: Public choice theory. Collective decisions. Direct and representative democracy. Direct democracy. Representative democracy. The unanimous agreement rule and the majority rule. The rule of unanimous agreement. The majority rule. Other aspects of majority voting. The Condorcet criterion. The voting paradox. Alternative voting procedures. Other pitfalls of public choice. The roles of actors involved in public choice.
  • Elite theory and the public interest: Elite theory. Models of government behaviour. Public policies and their economic implications. The public interest. Public policy. Government failures and their causes.
  • Public sector efficiency: Definition of efficiency in the context of the public sector. The public sector's tendency towards inefficiency. Allocation and productive inefficiency. Factors affecting the efficiency of the public sector. Methods to establish an objective basis for public expenditure decisions. Efficiency and public oversight.
  • Evaluating expenditure programmes: Economic evaluation of public expenditure programmes. The economic evaluation procedure. Identifying potential programmes and projects. Identifying and quantifying costs and benefits. Methods of economic analysis of public programmes. Selecting a programme for implementation.
  • Public budget revenue and expenditure: The concept of finance and the definition of public finance. The evolution of views on the role of public finance. Public revenue. Public expenditure. Public budget balances.
  • Public debt and its management: Public debt and its causes. Forms of public debt. The Maastricht fiscal criteria. The consequences of public debt. Addressing the debt problem and managing debt.
Literature
    required literature
  • Mikušová Meričková, B., Stejskal, J. Teorie a praxe veřejné ekonomiky. Praha, 2014. info
  • SZAROWSKÁ, Irena. Municipální a regionální finance: Distanční studijní text. Rozšířené a přepracované vydání. Karviná: Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné, 2025. info
  • TETŘEVOVÁ, Liběna. Veřejná ekonomie. Praha: Professional Publishing, 2008. ISBN 978-80-86946-79-5. info
  • VARADZIN, František. Veřejná ekonomika: distanční studijní text. Karviná, 2020. info
    recommended literature
  • BAILEY, S.J. Veřejný sektor: teorie, politika a praxe. Praha: Eurolex Bohemia, 2004. info
  • DUBEN, R. Ekonomie veřejného sektoru. Praha, 2000. ISBN 80-245-0049-3. info
  • JACKSON, P. M. and C. V. BROWN. Ekonomie veřejného sektoru. Praha: Eurolex Bohemia, 2003, 773 pp. ISBN 80-86432-09-2. Ekonomie veřejného sektoru - digitalizovaný dokument Národní knihovny info
  • NEKOLA, M., GEISSLER, H., MOURALOVÁ, M. Současné metodologické otázky veřejné politiky. Praha: Karolinum, 2011. ISBN 978-80-246-1865-4. info
  • OCHRANA, F., PAVEL, J., VÍTEK, L. A KOL. Veřejný sektor a veřejné finance: Financování nepodnikatelských a podnikatelských aktivit. Praha: Grada Publishing, 2010. ISBN 978-80-247-3228-2. info
  • PILNÝ, J., PEŠTA, J. Ekonomika veřejného sektoru. Pardubice, 2000. ISBN 80-7194-258-8. info
  • REKTOŘÍK, J. A KOL. Ekonomika a řízení odvětví veřejného sektoru. Praha: Ekopress, 2007. ISBN 978-80-86929-29-3. info
Teaching methods

  • Lectures with discussion: Theoretical explanations will be supplemented with practical examples, with time also devoted to discussing current cases from public economics practice.
  • Case study analysis: Students will analyse specific situations relating to the operation of the public sector and its instruments.
  • Group work and presentations: Students will work on assigned topics in teams and present their solutions and proposals to improve the operation of public institutions.
  • Independent projects: Each student will complete an individual assignment analysing a selected instrument or issue in public economics.
  • Working with the academic literature and legislation: Students will be encouraged to actively engage with academic texts and the relevant legislation governing the public sector.

Assessment methods
The course is completed by an examination test, which the student takes within the IS SU system. To pass the test successfully, the student must write the test at least 60%, i.e. 18 out of 30 points.
Language of instruction
Czech
Teacher's information
All necessary information is available in the Interactive Course Syllabus.
The course is also listed under the following terms Winter 2023, Winter 2024, Winter 2025.
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