Public Finance

This course is about the public sector’s role in the economy. The course analyses of different forms of taxation affects the behavior of households and firms, the distribution of income, and economic efficiency. The course also discusses the organization of the public sector, and problems of public decision making.

Knowledge
You learn
- about collective decisions about spending and taxes
- about the efficiency and equity consequences of various taxes
- how the tax system affects saving, labor supply and the demand for goods and services
- about design of optimal taxes
- theories of public provision of health and social security

Skills
You should be able to
- understand and describe the preferences of agents that make policy decisions about spending and taxes
- use analytical and graphical models to analyze efficiency and equity consequences of taxes
- critically evaluate claims about taxes, health spending and pensions that are made in the public debate

General competence
You should be able to
- follow economic reasoning related to the course in the public debate and professional reports

2 hours of lectures every week and 2 hours of practical assignments every other week. Compulsory activity: 1 approved term paper. The term paper can be written as a joint project by up to four students.