This course aims to present an introduction to public economics to understand the proper role of the government in the economy. Public economics studies government intervention in the market economy, designed to move outcomes away from the market equilibrium. The government has traditionally played a fundamental role in economic development and social welfare. Students will explore the efficiency and equity problems, the distributional effects of various tax policies and government spending programs, and how government affects the behaviour of firms and households. The course addresses topics from public economics through a combination of theoretical models and empirical work.

The course is taught in cooperation with visiting lecturer from the US.