When the market fails, government intervention may be justified. Government actions have consequences for taxation, expenditure, and national debt. This module reviews the role of government in the economy. It covers both theoretical and empirical work in Public Economics.
The aim of this module is to enable the learner to understand the principal reasons for government interventions, and the possible forms and consequences of that intervention.
Module content:
Introduction Role of government and markets. Pareto efficiency
Markets and Equity
Social Welfare Maximisation. Collective decision-making.
Expenditure
Social Insurance and Income maintenance: expenditures on social welfare, health, education
Budgetary Theory and Policy
Deficit financing, debt and debt servicing Central and local government. Fiscal federalism, International issues in public finance (especially with reference to the European Union)
Market Failure
Aspects of market failure - public goods, externalities, asymmetric information, market power
Competition policy. Regulation. Environmental policies
Taxation
Taxation theory and policy. Optimal taxation. Capital and other tax bases. Tax Evasion and the shadow economy
This module will use a combination of learning and teaching methods. These methods involve lecturing, that in the class contact time, is combined with discussion and some problem solving.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 50 |
| Other Assessment(s) | 50 |