Public economics

The aim of this module is to provide students with an overview of some major issues of modern public economics. The module will allow students to understand the normative and positive effects of government intervention in the economy. The module will start by considering the role of government as a provider of goods and services and as a regulator of private economic activities in modern market economies and how it raises funds via taxation to finance its functions. The module will then proceed by presenting the efficiency and equity reasons for government intervention and the economic effects and design of commodity and income taxation.

Applying knowledge and understanding: By the end of the module students will be equipped with analytical tools for understanding why government provision is desirable for some goods and services but not for others; why and how governments should regulate some but not all private economic activities; how taxation and transfers affect welfare and behaviour of households and firms.

Making judgements: By the end of the module, students should know how to use economic analysis to make informed judgements about the level and composition of government spending and taxation that result from actual government policies.

Communication skills: Although the module is lecture-based, students will be able to test their understanding and ability to communicate knowledge of the relevant topics by self-assessment tests. These tests will be made available on the module Ariel website as the module proceeds.

Learning skills: Throughout the module, topics will be presented mainly by using theoretical models, although reference to public sector data and actual government policies will be made continuously. By the end of the module, students should be able to understand and explain the economic content, assumptions, limitations, policy implications and relevance of the models presented.