Objectives
- to gain theoretical and empirical knowledge in Public Economics;
- to advance in analysing (real life) problems from a public economics perspective as well as to learn to discuss such issues by presenting articles in class.
Contents
This course studies government's economic policy, the reasons for market intervention such as market failure and the tools that can be used to achieve socially desirable outcomes. The course deals, among others, with theories of the public sector, equilibrium and efficiency analysis (first and second fundamental theorems), different types of public goods (e.g., club goods), externalities, imperfect competition (regulation and taxation issues), and asymmetric information (e.g., related to health care). This course builds upon the knowledge and competences obtained in the course Microeconomics (6 EC) by introducing advanced techniques of theoretical analysis and deepening the knowledge of the topics treated. A solid understanding of core concepts will be acquired. During the course, where relevant, real life problems will also be studied and discussed. Empirical and experimental scientific work will be used to further understand the theory and its shortcomings. Students are supposed to actively participate in the lecture and the tutorials.
Recommended prior knowledge
Students are expected to be proficient at optimization tools before starting this course. Such knowledge will be assumed throughout the course, so if necessary, students must re-study optimization techniques, first and second order conditions for a maximum, and concave/convex functions. It is desirable to have a firm understanding of microeconomic analysis, and economic modelling of problems to have a manageable work load in this course.
Registration at
Please go to https://www.sis.uva.nl
Format
Weekly: a two-hour lecture and two two-hour tutorials.
Time
Please go to http://rooster.uva.nl
Study materials
- Hindriks and Myles (2006). Intermediate Public Economics. MIT Press, Chapters 1-9. ISBN: 978-0262083447, (€51);
- lecture notes.
Assessment
The course assessment will be 40% midterm examinations and 60% for the final examination, both are closed-book examinations consisting of open questions.
In the case of a resit, the results obtained for these partial examinations will be disregarded. During a resit, the full course material will be tested.
To pass this course a minimum of 55 points (out of 100) is required on the final examination. If the score on the final examination is less than 55 or the overall score is less than 55, the student may participate in a retake for the course.
Examination date
Please go to http://rooster.uva.nl and http://www.student.uva.nl/feb-academicyear.
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