EC426 and EC513 Public Economics 2007/8 Introduction 4 October 2007

Overview Teaching for MSc and MRes Public Economics Teaching for MSc and MRes Public Economics Organised in 3 modules: Organised in 3 modules: 1. Core Public Economics for Graduate Students 2. Issues in Public Economics for Graduate Students 3. Public Economics for PhD Students Exams Exams  MSc students examined on modules 1 and 2  MRes students examined on 2 and 3  Three-hour written examination in the Summer Term  papers can be taken as a general guide  MSc students also do an extended essay

Module 1: Core Public Economics for Graduate Students For MSc students only For MSc students only  MRes students are assumed to be familiar with the material  Covers the basic principles  Introduces the themes in modules 2 and 3 Teaching Arrangements Teaching Arrangements  10 weekly two-hour lectures in MT given by Frank Cowell and Jonathan Leape.  Lectures supplemented by one-hour classes

Module 1: Components The scope of public economics The scope of public economics Welfare analysis of state intervention Welfare analysis of state intervention Equity, social welfare and taxation Equity, social welfare and taxation Policy design: social insurance Policy design: social insurance Policy design: taxation Policy design: taxation Public goods Public goods Externalities and environmental policy Externalities and environmental policy Taxation and companies Taxation and companies International issues in taxation International issues in taxation Behavioural public economics Behavioural public economics

Module 2: Issues in Public Economics for Graduate Students Common to both MSc and MRes students Common to both MSc and MRes students  All of the items in module 2…  … have a clear link with the broad themes in module 1 Teaching Arrangements Teaching Arrangements  10 weekly two-hour lectures in MT given by Henrik Kleven and Frank Cowell  Lectures are supplemented by one-hour classes

Module 2: Components Taxes, transfers, and labour supply Taxes, transfers, and labour supply Incomes and behavioural responses at the top of the distribution Incomes and behavioural responses at the top of the distribution Optimal transfer programs: the Earned Income Tax Credit (EITC) Optimal transfer programs: the Earned Income Tax Credit (EITC) Optimal transfer programs: targeting, tagging, and ordeal mechanisms Optimal transfer programs: targeting, tagging, and ordeal mechanisms Education Education Commodity taxation Commodity taxation Wealth taxation Wealth taxation Poverty, inequality and redistribution Poverty, inequality and redistribution Compliance problems Compliance problems Fiscal governance Fiscal governance

Module 3: Public Economics for PhD Students Exclusive to MRes students. Exclusive to MRes students.  Builds on the structure of modules 1 and 2  Designed to introduce PhD students to some principal themes emerging in current research Teaching Teaching  Five two-hour lectures  Frank Cowell and Henrik Kleven Topics Topics  Theories of justice and fairness. “Complaints” and deprivation.  Claims and liabilities approach to division problems.  Social choice and responsibility  Recent developments in optimal income taxation  The tax-transfer treatment of families  Dynamic issues in taxation