This course analyzes the rationales for government intervention in the economy, the form that intervention takes, and the effects of government policy. We will review the economic tools of analysis used in public finance, including cost benefit analysis, and apply them to government policies, largely at the federal level. The course will focus on policies to remedy externalities, the provision of public goods, social insurance, and the effects of taxes. Within social insurance, we will cover social security and health reform. We will then explore the role taxation plays in government policy. Tax topics include the EITC, the effect of taxes on labor supply, savings and firm decisions, and fundamental tax reform. Prerequisites: PPHA 32300 or the equivalent; the course uses economic theory.
