Economics 435: Public Sector Economics

Topics:

Introduction to Welfare economics
Public Goods
Externalities: (Here is an interesting illustration of externalities.)
Political Economy
Cost Benefit Analysis
Health care
Expenditure Programs for the Poor
Tax Analysis and Income Distribution:
Taxation and Efficiency
Efficient and Equitable Taxation
Deficit Financing:
Current Mess and the Great Depression: Fishback Article

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Class Syllabus

Steven Landsburg has two excellent books explaining everyday situations with simple economic intuition. I encourage you to read at least one of these books! The second book is almost entirely devoted to topics related to what we are doing in this class.

1) The Armchair Economist
2) More Sex is Safer Sex

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Problem Sets:

Problem set #1: Review

Solution

Problem set #2: Pareto Optimality and the Fundamental Welfare Theorems

Solution

Problem set #3: Public Goods

Solution

Problem set #4: Externalities

Solution

Problem set #5: Political Economy

Solution

First exam covers problem sets 1-5 as well as any material covered in class.

Problem set #6: Cost Benefit Analysis

Solution

Problem set #7: Expenditure Programs for the Poor

Solution

Problem set #8: Taxation and Income Distribution

Solution

Problem set #9: Taxation and Efficiency

Solution

Second exam covers problem sets 6-9 as well as any material covered in class.

Problem set #10: Efficient and Equitable Taxation: Ramsey Pricing and the Edgeworth Model of Optimal Income Tax

Solution

Problem set #11: Deficit Financing

Solution

Final exam is comprehensive.