The aim of this course is to introduce students to a number of key topics in public economics. The focus is on relevant economic theory in this area. The topics include an introduction to public economics and political economy (voting and rent-seeking), a review of equilibrium and efficiency, departures from efficiency (public goods, externalities and asymmetry of information), equity and redistribution (social welfare functions and interpersonal comparability of utility), optimal taxation (commodity, income and mixed taxes), non-tax instruments for redistribution and tax reform.

Upon successful completion of the requirements for this course, students should be able to:

• Understand the public economics concepts and theoretical models that form the basis of current research in public economics, including models employed to analyse public economics topics such as public goods, public provision of private goods, externalities and optimal taxation, among others;
• Understand and explain the empirical issues and policy implications associated with public economics topics;
• Know, summarize and assess recent contributions to the public economics literature;
• Be ready to identify a research topic and undertake independent research in public economics.

4 problem sets and an end-of-semester examination

10 hours per week

An honours degree in Economics with H2A or higher, or completion of a Graduate Diploma in Economics with an exit grade of Merit or better

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