Public Economics

This is a graduate course in the principles of public economics and topics in public economics. The course will emphasize the combination of theoretical and empirical research. We will study the impact efficiency and distortionary aspects of taxation. We will discuss the government intervention in the context of public goods and externalities, including applications to specific expenditure programs and education. We will cover justifications for government involvement in redistribution and insurance markets. Optimal design of transfer and social insurance programs. Theoretical and empirical analyses of programs including cash welfare assistance, unemployment insurance and social security.

We discuss modern econometric techniques that allow assessment of how public policy affects individuals, businesses and society.

Public economics is a wide topic that in principle includes most aspects of the public sector. It includes topics related to:

1. Introduction and methods
2. Tax incidence
3. Tax Distortion
4. Optimal Commodity Taxation
5. Externalities and Public Goods
6. Taxes and Labor Supply
7. Optimal Income Taxation
8. Tax Salience
9. Taxes, transfers and low income families
10. Optimal Unemployment Insurance
11. Education Policies

A student who has completed the course should have the following learning outcomes:

Knowledge

The student

• is able to read and understand reports and journal articles that make use of the concepts and methods that are introduced in the course.
• knows how public policy affects economic behavior.
• knows how to assess empirical research on public policy.

Skills

The student can

• apply the theory to relevant policy issues.
• can empirical assess the effects of policies.

General competence

The student can

• follow detailed argumentation.
• discriminate between valid and invalid argumentation.