ENR-22306 Public Sector Economics

Course

Credits 6.00

Language of instruction:

English and Dutch

Assumed knowledge on:

Microeconomics (ECH-21806) or Economics of Agribusiness (AEP-20306)

Contents:

This course considers the role of the government in the economy. It does so from a microeconomic perspective. The course deals with the taxing and spending activities of the government, and how the government influences the allocation of resources and the distribution of income. Moreover, it introduces the subject of political economy by providing an economic analysis of political decision-making. The focus is not only theoretical but also empirical. The course extensively discusses the actual financial position of the Dutch government, the existing financial norms about government debts and budget deficits, the present organisation of the Dutch social security system and the health care system, and the relationship with the European Union. More specific topics include the role of privatisation, the implications of an ageing population, the flat tax, and the income distribution.

Learning outcomes:

After the course, the student will be able to understand and apply the basic tools of positive and normative microeconomic analysis to the subject of public expenditure and taxation. In particular, he or she will be able to:
- determine the efficient provision of public goods; - employ the different public responses to externalities; - apply economic principles to the analysis of political decision-making; - analyse the incidence and social efficiency of taxes; - discuss the actual financial position of the Dutch government; - evaluate the actual financial position of the Dutch government with respect to existing financial norms about government debts and budget deficits; discuss recent themes about the Dutch welfare state such as the economic consequences of the ageing population.

Activities:

Hearing lectures (twice per week) on the course materials. Practicals (once per week) in which students make exercises on the course materials.

Examination:

Written examination/practical exercises/paper.

Literature:

A course guide is available.