Public Economics

Overview

The module concentrates on public expenditure and taxation issues. Following a review of the welfare basis for government intervention, the expenditure section focuses on public goods, externalities, public choice, equity and efficiency aspects of health care and education provision, and fiscal federalism. The taxation section considers issues of tax incidence and the effects of taxation on savings and labour supply. The optimal (direct and indirect) tax literature is reviewed.

Learning Objectives

To develop the skills appropriate to an economic analysis of the role, and the effects of the government in market economies such as the UK and the Republic of Ireland. Students will be introduced to the concepts of economic efficiency and social justice and to the development of a framework which attempts to explain why the state produces and/or allocates some goods but leaves others to the private market. Furthermore students will be introduced to the theoretical and empirical issues of positive and optimal taxation.

Skills

The module will build on and reinforce the analytical skills of students and encourage them to think critically about the role of government in the economy.

Assessment

Students must achieve an overall mark of 40% in the module to pass