This course guides students in understanding the foundations of economic policy analysis. It first introduces key concepts in public economics, such as the fundamental theorems of welfare economics, public goods, externalities, moral hazard, adverse selection, tax incidence, and tax efficiency. We then discuss inefficiencies associated with private markets and possible economic policy solutions. Next, we introduce a theoretical analysis of the effects of taxation. We analyze the rationales behind public unemployment insurance, health insurance, and pensions. Finally, we apply theoretical knowledge to a discussion of some important economic policy questions: climate change, population aging, and income inequalities.

Students will:

• Learn about key concepts and theoretical tools of economic policy analysis
• Understand the importance of the efficiency-equity trade-off
• Apply theoretical knowledge in discussions on the most pressing economic policy issues

Attendance is mandatory. Students may have a maximum of 2 absences.

Teaching methods include lectures, class discussions, interactive tasks, and written individual assignments.

The assessment is based on:

• Two problem sets: 30%
• Quizzes: 20%
• Exam: 50%
• Bonus points for in-class participation: 5%

Please note: Bonus points will be given only to those who have received positive points from other evaluations!

Grading Scale:

• 100% - 90% = Excellent
• 89% - 80% = Good
• 79% - 65% = Satisfactory
• 64% - 51% = Sufficient
• 50% - 0% = Fail

Please log in with your WU account to use all functionalities of read!t. For off-campus access to our licensed electronic resources, remember to activate your VPN connection connection. In case you encounter any technical problems or have questions regarding read!t, please feel free to contact the library at readinglists@wu.ac.at.