Handbook

This course investigates the role of the public sector in the economic arena. It explains where in the economy government intervention is needed and why; how this intervention influences the behaviour of actors in the private sector; and the welfare effects of such intervention. The course also applies a political economy lens to understand how and why behaviour in the public sector is determined not only by economic concerns but also by political processes. Specific topics to be covered include welfare economics, optimal taxation, market failure, economic regulation, market design, innovation policy, industrial policy, and political economy. The usefulness of these concepts for understanding and implementing effective economic stewardship will be demonstrated through their application to selected industrial sectors in Australia, such as the electricity and gas sector, mining, water, telecommunications, and transport infrastructure.