1. EC4r26: Public Economics EC426 Option Meeting 4 October 2007

2. Frank Cowell: Economics Public Economics EC426 MSc Public Economics 2007/8 Frank Cowell Henrik Kleven Jonathan Leape

3. 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

4. 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.

5. 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

6. 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

7. 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

8. 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

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

10. 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 transfer programs: the Earned Income Tax Credit (EITC) 14. Optimal transfer programs: targeting, tagging, and ordeal mechanisms 15. Education 16. Commodity taxation 17. Wealth taxation 18. Poverty, inequality and redistribution 19. Compliance problems 20. Fiscal governance Issues in Public Economics : Henrik Kleven and Frank Cowell

11. EC4r26: Public Economics Who does what? Frank Cowell: Frank Cowell:  Term 1, lectures 1-5  Term 2, lectures 16-20 Henrik Kleven: Henrik Kleven:  Term 2, lectures 11-15  Term 2, classes Giovanni Ko Giovanni Ko  Term 1, classes Jonathan Leape: Jonathan Leape:  Term 1 lectures 6-10.

12. 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

13. 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.

14. EC4r26: Public Economics Some Features Connection with STICERD Research Programmes Connection with STICERD Research Programmes Regular Taxation Seminars Regular Taxation Seminars  http://fmg.lse.ac.uk/events/ http://fmg.lse.ac.uk/events/ Web materials Web materials  Economics Website: http://econ.lse.ac.uk/ http://econ.lse.ac.uk/  Electronic Library: http://www.blpes.lse.ac.uk/e-lib/ http://www.blpes.lse.ac.uk/e-lib/  Website for this course: darp.lse.ac.uk/EC426.htm darp.lse.ac.uk/EC426.htm