Level of Study
Objectives and Content
This is a graduate course in the principles of public economics and topics in public economics. The course will emphasize the combination of theoretical and empirical research. We will study the impact efficiency and distortionary aspects of taxation. We will discuss the government intervention in the context of public goods and externalities, including applications to specific expenditure programs and education. We will cover justifications for government involvement in redistribution and insurance markets. Optimal design of transfer and social insurance programs. Theoretical and empirical analyses of programs including cash welfare assistance, unemployment insurance and social security.
We discuss modern econometric techniques that allow assessment of how public policy affects individuals, businesses and society.
Public economics is a wide topic that in principle includes most aspects of the public sector. It includes topics related to:
- Introduction and methods
- Tax incidence
- Tax Distortion
- Optimal Commodity Taxation
- Externalities and Public Goods
- Taxes and Labor Supply
- Optimal Income Taxation
- Tax Salience
- Taxes, transfers and low income families
- Optimal Unemployment Insurance
- Education Policies
A student who has completed the course should have the following learning outcomes:
- is able to read and understand reports and journal articles that make use of the concepts and methods that are introduced in the course.
- knows how public policy affects economic behavior.
- knows how to assess empirical research on public policy.
The student can
- apply the theory to relevant policy issues.
- can empirical assess the effects of policies.
The student can
- follow detailed argumentation.
- discriminate between valid and invalid argumentation.
Required Previous Knowledge
Students must have completed a Bachelor's degree in Economics or equivalent (subject to approval by the Department of Economics).
Access to the Course
The course is oriented towards students in the Master¿s Programme in Economics or Professional Studies in Economics but is open to visiting students upon approval of student request.
Teaching and learning methods
Compulsory Assignments and Attendance
One set of compulsory exercises must be handed in at a pre-specified date (pass/fail). Approved compulsory requirements do not have time limits.
Compulsory assignments that are not accepted on the first try, may be handed in a second time. To be able to get this opportunity, the student must have made a sincere effort the first time around; that is, the student must have tried to answer most of the assignment.
Forms of Assessment
4 hours written exam
Examination Support Material
Mathematical Formula Collection of K Sydsæter, A. Strøm and P. Berck or Mathematical Formulas for Economists of B Luderer, V. Nollau and K. Vetters and calculator. The following simple, non-programmable calculators without graphical display are allowed to be used for written tests:
All models of the type:
- Casio FX-82, Casio FX-82ES PLUS or Casio FX-82EX
- Hewlett-Packard HP30
- Texas Instruments TI-30
The Department of Economics can conduct a sample of aids in the examination room.
Assessment in teaching semester. New exam the following semester only for students who have a valid document of absence.
All courses are evaluated according to UiB's system for quality assurance of education.