Welcome to Public Economics. This is a course on the basics of the economics of public intervention. Depending on the time we will cover the topics of Taxation, Social Insurance, Public Goods, Social Security and Education.
Chapter 1: Introduction to Public EconomicsReasons for government intervention. Some data on the size of the public sector in Spain and the world. Current debates about government intervention. Theoretical and empirical tools to analyze public intervention.
Chapter 2: The role of government I: ExternalitiesTheory. Market solutions. Solutions with public intervention. Environmental and health externalities.
Chapter 3: The role of government II: Public goodsBasic theory. Cost/benefit analysis. Political Economy. Local public goods. Public provision of private goods: education.
Chapter 4: The role of government III: Public insuranceIntroduction. Social Security. Unemployment insurance. Health insurance.
Chapter 5: Taxes and redistributionInequality and poverty. Tax incidence and welfare losses. Optimal labor income taxation. Taxable income elasticity. Behavioral effects of taxes and transfer on labor supply. Taxes on capital and savings.
Final grade in the first assessment period (January):The final grade will be based on the grades obtained in the following activities:1. Oral exposition about topics related to the course, using research articles proposed by the teacher (50%).2. Discussion of the papers and written Report: students are expected to participate in the discussion of all the papers presented during the course; moreover, students will choose a few among all the oral expositions and they will hand in an essay with critical comments about the articles (25%).3. Final Exam (25%)The precise dates of the oral expositions, of the final exam and for handing in the written essay will be announced in advance.IMPORTANT: The student must attend at least to 80% of the lectures and practical sessions.
Final grade in the second assessment period (July):Only students that did not pass the course in the first assessment period can be graded in the second assessment period.The final grade in the second evaluation period is EXCLUSIVELY given by the grade obtained in a retake exam (with theory and practice questions) about the whole content of the course. Grades from continuous assessment, if any, will not be taken into account.