Economics of Policy Issues

Course Overview

This module will analyze the relationship between institutions and policy outcomes. In particular, it will focus on voting behaviour and the impact of forms of government and electoral rules on redistribution and government expenditure. A focus on social justice and entitlements such as health care and old age pensions will then be complemented by analysis of alternative levels of taxation. The module concludes with a more philosophical discussion on the overall need for government in society.

The module outline is as follows:

1. Voting – Median Voter, Majority Voting, Political Competition, Voting on Redistribution

2. Social Justice – Insurance, Moral Hazard and Social Justice without Government

3. Entitlements – Attributes and Consequences, Old Age, Health Care

4. Choice of Taxation – Optimal Taxation, Capital and Other Taxes and Fiscal Federalism

5. The Growth of Government and Competing Views on the Need for Government.