At the end of this learning unit, the student is able to :
|1||This course is essentially an evaluation of the role of the public sector in a market economy. The course will use the most recent economic analysis to (re)consider the efficiency and distributive ef-fects of government intervention. The optimal design of government intervention both in terms of public expenditures and tax collection is also studied. The main objective of the course is to strike a balance between political and market failures in determining the form and the extent of government intervention. Students taking this course will acquire: 1 An understanding of the design of public spending and tax collection; 2 An understanding of the tradeoff between equity and efficiency 3 The skill to apply economic analysis to the public sector|
The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
This course is essentially an evaluation of the role of the public sector in a market economy. The course will use the most recent economic analysis to (re)consider the efficiency and distributive effects of public intervention in the economy. The optimal design of public intervention with special attention to implementation and politics.
Due to the COVID-19 crisis, the information in this section is particularly likely to change.Teaching is by one two-hour lecture every week which will present the core material. Fortnightly tutorials will consist in solving problems. This should help to develop students' skill and agility in public economics as well as to check their understanding of the course. The course is divided in two parts. In part 1 we analyse the method of public economics, behavioral public policy, Tax incidence with application to electricity tax and soda tax, Rent seeking and lobbying, and sustainable debt. Part 1 will conclude with a group work.In part 2, we study intergenerational public policy with two applications: pensions and education. We study the pension in theory and the pension reform in practice. We discuss different measures of social mobility and inequality in education. We relate unequal school opportunity to intergenerational income transmission. The Part 2 concludes with a group work on pension reform for a specific country.
Due to the COVID-19 crisis, the information in this section is particularly likely to change.Final grade is based on a closed book written exam (60%), group work (25%) and tutorials (15%).
Hindriks and Myles " Intermediate Public Economics " MIT Press 2006
Hashimzade, Hindriks, and Myles "Solutions manual to Accompany Intermediate Public Economics" MIT press 2006.
Bueno de Mesquita, Political Economy for Public Policy, Princeton University Press 2016
Dowling, Patashnik, and Gerber, Unhealthy Politics, Princeton University Press 2017
Banerjee and Duflo, “Good Economics for Hard Times” Public affairs, November 2019.