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, industrial policy, and political economy.

Students will also have the opportunity to learn more exotic topics such as collusion, financial stability, and shadow banks, through several video lectures. These mini lectures provide a more complete picture of government policy and cover real-world topics that are not often discussed in a public economics course.