This course analyzes the rationales for government intervention in the economy, the form that intervention takes, and the effects of government policy. We will offer two terms of this class that cover the similar introductory material, but focus on somewhat different theoretical and empirical tools and different expenditure programs and taxes.
The courses may be taken individually or as a sequence; the only prerequisites are the microeconomics core classes or their equivalent.
Winter term will provide an introduction to cost benefit analysis, public goods, and the incidence and deadweight loss of taxation, externalities, and budget policy. It will cover public health insurance policy including Medicare, Medicaid, the effects of taxation on savings, and corporate taxation.
Spring term will also cover public goods and the incidence and deadweight loss of taxation, but will also examine income redistribution, and the role of empirical evidence in public finance. It will cover welfare programs, unemployment insurance, disability insurance, social security, and income and payroll taxation and labor supply responses to taxes.
Prerequisites: PP32300 and PP32400 or their equivalent.
