This course uses the basic tools of microeconomics to analyse the role of government and the rationale for and design of taxation and expenditure policy. Emphasis is placed on attaining a solid grasp of the basic theory of public economics. The topics to be covered will be drawn from: a review of basic microeconomics; welfare economics; externalities; public goods; public choice; distribution issues; cost benefit analysis; and taxation - efficiency and equity issues, Australian tax policy, and fiscal federalism.

2 take-home tests, a research essay and an end-of-semester examination. Details to be determined at the commencement of the course.

Three contact hours per week.

Completion of or concurrent enrolment in ECON2101/2111 Microeconomics 2 (P or H).

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=ECON2131