Universität Wien

040923 KU Public Economics (2022S)

8.00 ECTS (4.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

*Meetings will be held synchronously, online or in hybrid format, depending to regulation in place during the covered period.*

  • Thursday 03.03. 11:30 - 13:00 Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Friday 04.03. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 10.03. 11:30 - 13:00 Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Thursday 17.03. 11:30 - 13:00 Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Friday 18.03. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 24.03. 11:30 - 13:00 Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Friday 25.03. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 31.03. 11:30 - 13:00 Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Friday 01.04. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 07.04. 11:30 - 13:00 Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Friday 08.04. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 28.04. 11:30 - 13:00 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Friday 29.04. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 05.05. 11:30 - 13:00 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Friday 06.05. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 12.05. 11:30 - 13:00 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Friday 13.05. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 19.05. 11:30 - 13:00 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Friday 20.05. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Friday 27.05. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 02.06. 11:30 - 13:00 Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock
  • Friday 03.06. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 09.06. 11:30 - 13:00 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Friday 10.06. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Friday 17.06. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Thursday 23.06. 11:30 - 13:00 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Friday 24.06. 13:15 - 14:45 Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
  • Monday 29.08. 16:45 - 18:15 Hörsaal 9 Oskar-Morgenstern-Platz 1 1.Stock

Information

Aims, contents and method of the course

*Prerequisites:*

Some familiarity with game theory and microeconomics will be expected.

The necessary game theoretical background can be met by studying Gibbons’ A Primer in Game Theory, Chapter 1, Sections 1.1 and 1.2. or weeks 1 and 2 of the Coursera lecture from the University of British Columbia (Jackson et al, Game Theory).

Students who studied microeconomics at an advanced undergraduate level (esp. consumer theory, producer theory, and walrasian equilibrium) should have the necessary background. Some specialized concepts from consumer theory will be used extensively: income expansion path (a.k.a. wealth expansion path), price offer curve, compensated demand function, Slutsky equation, equivalent and compensating variations. You find all of these in, e.g., Varian’s Microeconomic Analysis, chapters 7 to 10, or in Mas-Colell, Whinston, and Green’s Advanced Microeconomics, Chapters 2 and 3.

*Course Outline:*

When asked to pin down the optimal size of governement or list out optimal changes in activities of the public sector, economist rarely agree. One reason is that such questions are too ambitious for economists: they not well covered by the existing economic toolbox. Another reason is that economists do not all agree on the set of values that can legitimize state intervention. For instance, some take Pareto efficiency to be the only legitimate ground. Others factor in distributive justice or paternalism.

In this class we will illustrate and discuss some public sector related questions that can actually be addressed by making use of the standard microeconomics toolbox (game theory, consumption and production theory, equilibrium theory). We will also formalize important economic arguments for and against specific types of state intervention, and connect these to the value judgments they explicitely or implicitely involve.

Following usual approaches, we will keep the analysis of government activities and that of government finances separate. Both will be analyzed in this course.

Assessment and permitted materials

The assessment will be based on two extended homeworks (20pts each) and a final exam (60pts).

Minimum requirements and assessment criteria

The grading will then be as follows:
85-100 points, 1
70-85 points, 2
60-70 points , 3
50-60 points, 4
less than 50 points, 5.

A positive evaluation requires students to achieve a pass grade (4) and to actively attend the seminar. Two unauthorized absences will be excused.

Examination topics

*Part I – Efficiency*
I.a. Financing the state: efficiency costs of taxation.
I.b. Justifying state intervention: public goods and externalities.

*Part II – Distributive Justice*
II.a. Financing the state: tax incidence.
II.b. Justifying state intervention: redistribution.

Reading list

Readings will be made available on MOODLE in due time. All assigned readings will be in English.

Association in the course directory

Last modified: Tu 02.08.2022 08:47