Public Economics

Public sector is a major part of the Norwegian economy and covers close to 50 percent of the gross national product. The public sector has its justification in market failures and the government must take care of services where private markets are likely to fail. Public goods and redistribution are central concepts. The tax policy affects both the resource use in the public sector and the income distribution in the society. The government regulates markets in order to promote an efficient use of the resources. The course includes different microeconomic topics that illustrate the role of the public sector in the economy.

Students should acquire knowledge of the justification for the public sector’s activities and funding, and the role of public policy in regulating the economy.

4 hours of lectures every week. One compulsory term paper. The course is an optional master's course, and is not taught every semester. Check www.ntnu.edu/econ.