Public Economics analyses the role of the government in the economy. In this course we will discuss justifications for and the design of public policy as well as its consequences on market outcomes. Issues related to public goods, taxation, in particular the effects of tax policy on labor supply, entrepreneurship and innovation will be emphasized.
The primary goal of the course is to familiarize students with the central concepts and principles of public economics. The course aims at providing a good understanding of theoretical work and how it may be applied to actual policy problems. Students will get a good overview of recent key contributions in the field and how these relate to empirical observations.