Academic Catalog 2020–2021

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ECO852 Public Economics

[3–0, 3 cr.]

This course is a microeconomic examination of the economic role of government. The course covers theory and evidence on government expenditure and taxation policy. In the expenditure component, we examine the theories of public goods, externalities and social insurance, and applications of these theories in various sectors such as education, welfare programs, and health care. In the taxation component, topics include: tax incidence, optimal tax theory, and the effect of taxation on labor markets and corporate behavior.

Prerequisite: ECO821 Advanced Microeconomics