This course covers selected topics in the economics of the public sector and analyses the role of the government in the economy. We study various market failure as a justification for public action. Issues related to public goods, taxation and tax policy will be emphasized. We also address competition policy and contract theory issues.
The aim is to provide an understanding of the reasons for government intervention in the economy, analyzing the benefits of possible government policies, and the response of economic agents to the government's actions.
Students taking this course will acquire: An understanding of the tradeoff between equity and efficiency ; An understanding of the design of public spending and tax collection; and The skill to apply economic analysis to the public sector