EC4r26: Public Economics EC426 Option Meeting 29 September 2011

Frank Cowell: Economics Public Economics EC426 MSc Public Economics 2011/12 Frank Cowell Jonathan Leape Henrik Kleven Tony Atkinson

EC4r26: Public Economics Aims 1 To give you an appreciation of analytical methods in Public economics To give you an appreciation of analytical methods in Public economics Economic methods for: Economic methods for:  the study of the public sector  the role of the State in principle  the role of the State in practice  the role of economic policy

EC4r26: Public Economics Aims 2 To provide a thorough grounding in principles of Public Economics To provide a thorough grounding in principles of Public Economics Economic principles underlying Economic principles underlying  tax and social security design  provision of goods in the public sector  tax enforcement  the effective design of economic institutions.

EC4r26: Public Economics Aims 3 To enable you to understand the practical problems of Public economics To enable you to understand the practical problems of Public economics Focus on problems: Focus on problems:  in applying analytical methods  in implementing economic principles  in assessing the impact of state intervention

EC4r26: Public Economics Intended learning outcomes 1 By the end of the course you should be able to: Discuss critically the major papers in the literature on public economics and policy Discuss critically the major papers in the literature on public economics and policy Present a coherent argument orally and in writing on topics in public economics Present a coherent argument orally and in writing on topics in public economics Use methods of independent research to prepare a short dissertation Use methods of independent research to prepare a short dissertation

EC4r26: Public Economics Intended learning outcomes 2 To apply economic analysis to key economic policy problems To apply economic analysis to key economic policy problems To appreciate key debates in thinking about contemporary economic policy problems. To appreciate key debates in thinking about contemporary economic policy problems. To have the background training necessary to function as an economic policy analyst To have the background training necessary to function as an economic policy analyst

EC4r26: Public Economics Components of the course Michaelmas term: core public economics Michaelmas term: core public economics  Role of public economics  Market “failure”  Redistribution  Principles of design applied to  Tax  Social security  Public goods  Microeconomic analysis of policy  Individuals  Companies Lent term: i ssues in public economics Lent term: i ssues in public economics Classes Classes

EC4r26: Public Economics Michaelmas term lectures 1. Welfare analysis of state intervention 2. Equity, social welfare and taxation 3. Policy design: social insurance 4. Policy design: income taxation 5. Commodity taxation 6. Public goods 7. Externalities and environmental policy 8. Taxation and companies 9. International issues in taxation 10. Behavioural public economics Core public economics: Frank Cowell and Jonathan Leape

EC4r26: Public Economics Lent term lectures: 11. Taxes, transfers, and labour supply 12. Incomes and behavioural responses at the top of the distribution 13. Optimal low-income support 14. Wealth distribution and taxation 15. Poverty, inequality and redistribution 16. Tax compliance 17. Who pays taxes? General equilibrium tax incidence 18. Can welfare states compete in a global economy? 19. Global public finance and the funding of the MDGs 20. A global deal on climate change and development? Issues in Public Economics : Henrik Kleven, Frank Cowell and Tony Atkinson

EC4r26: Public Economics Who does what? Michaelmas term Michaelmas term Lectures 1-5: Frank Cowell Lectures 1-5: Frank Cowell Lectures 6-10: Jonathan Leape Lectures 6-10: Jonathan Leape Classes: Sarah Sandford Classes: Sarah Sandford Lent term Lent term Lectures 11-13: Henrik Kleven Lectures 11-13: Henrik Kleven Lectures 14-16: Frank Cowell Lectures 14-16: Frank Cowell Lectures 16-20: Tony Atkinson Lectures 16-20: Tony Atkinson Classes: Matthew Skellern Classes: Matthew Skellern

EC4r26: Public Economics Your role Classes Classes These start in week 3 These start in week 3 In the second term you prepare presentations and short talks In the second term you prepare presentations and short talks Essential part of preparation for the final exam. Essential part of preparation for the final exam. The extended essay The extended essay Wide range of possible topics Wide range of possible topics Trains you in dissertation writing Trains you in dissertation writing

EC4r26: Public Economics Examinations The examination has two components The examination has two components  A three hour unseen paper  An extended essay (dissertation) Each component carries equal weight Each component carries equal weight Format and regulations for each component on the web site. Format and regulations for each component on the web site.

EC4r26: Public Economics Some features Connection with STICERD Research Programme Connection with STICERD Research Programme Regular Taxation Seminars Regular Taxation Seminars  http ://fmg.lse.ac.uk/events/ http ://fmg.lse.ac.uk/events/ http ://fmg.lse.ac.uk/events/ Web materials Web materials  Economics Website:  Electronic Library:  Website for this course: darp.lse.ac.uk/EC426/ darp.lse.ac.uk/EC426/