This module is a continuation of EC2001 (Intermediate Microeconomics) with an analysis of the public sector and the different modes of government intervention in markets and of redistribution.

Learning Outcomes

It is intended that by the end of the course, students will be able to:

describe and analyse tradeoffs between efficiency and redistribution in market regulation and in tax design.

illustrate tradeoffs in market regulation and in tax design using precise examples.

compare and contrast different welfare state templates and their consequences.

relate the static tradeoffs to the dynamics of public debt and to issues of sustainability and commitment.

Course Outline

Public sector activity: regulation, public expenditure and tax collection...

Core models of public economics: commodity taxation, public goods, externalities, Pigouvian taxation...

Redistribution: minimum wage, universal basic income, taxation...

Government budget constraints: public debt, delegation, austerity, commitment ...