Course: Public Economics (5206-211)

Persons:

• Prof. Dr. Nadine Riedel ()
• Prof. Dr. Nadine Riedel (verantwortlich)

Type of Course:

lecture with exercise

In-Class Hours Per Week:

2

Contents:

The lecture provides an overview of the different approaches for justifying federal intervention into market mechanisms. Based on a discussion under which circumstances markets will lead to an efficient allocation, measures on the side of the federal income and expenses are analysed with regard to their efficiency.
On the federal expenses side, the market failure of private insurance with adverse selection and the possibility of a pareto improvement due to a federal provision of such insurance is discussed. Different theories for the justification of a federal distribution policy are illustrated. The focus is also on the analysis of incentive effects of differently designed social support mechanisms. On the federal income side, the students will learn to analyse the efficiency and incidence of a quantity tax in the case of perfect competition. Finally, the requirements for a sustainable public debt are derived and several politico-economic explanatory approaches for the observed increase in the government activity are discussed.

Literature:

Will be announced in the lecture or on ILIAS.

Location:

Hohenheim

Module:

• 5206-210 AVWL 1: Market Failure and the State (compulsory)