ØSS115 Public Economics

Contents and structure

This course is based on and complements BØA203 Mikroøkonomi (the basic course in Microeconomics). The course provide students with a thorough understanding of market performance, market failure and public policies to enhance economic efficiency, social welfare and justice.

Contents

• Antitrust policy
• Externalities and environmental policy
• Public provision and production of goods
• Taxes
• Social security
• Distributional policy
• Cost-Benefit analysis

Learning Outcome

On completion of this course students will have:

Knowledge:

• Basic concepts of welfare economics
• Analysing the consequences of antitrust policies w.r.t. economic efficiency
• Analysing the consequences of environmental policies w.r.t. economic efficiency
• Analysing the welfare arguments in favor of public supply of goods, including the organization of the production
• Analysing how taxes affect economic efficiency, including the principles of optimal taxation
• Analysing the welfare arguments in favor of social security and redistribution as well as the consequences for economic efficiency
• Knowledge of ethical theories relevant for assessing economic policies, including the trade-off between economic efficiency and fairness
• Basic cost-benefit analysis

Skills

• Formulate, illustrate, solve and apply micro­economic and welfare economic models
• Simple cost-benefit analyses
• Critical reflection on public policies and the inherent ethical dilemmas

Competence:

• On completion of this course students will be able to use abstract models

Entry requirements

None

Recommended previous knowledge

BØA203 Mikroøkonomi or similar introductory course in microeconomics.

Teaching methods

Lectures and problem solving.

Compulsory learning activities

2 out of 3 written submissions must be approved before taking the exam. 

Assessment

5 hour written exam. The exam may be digital

Information regarding time and location is to be found on Studentweb.

Grading: A-F where F is fail.

Examination support material

All calculators are allowed, with the following exceptions/limitations

- the calculator can not communicate

- the calculator can not handle symbolic mathematical expressions

- the calculator will not be connected to electricity

- the calculator can not make noise in the exam facilities

More about examination support material