Bachelor
2026/2027
Public Economics
Type:
Elective course (International Programme 'International Relations and Global Studies')
Delivered by:
Faculty of World Economy and International Affairs
When:
2 year, 3, 4 module
Open to:
students of one campus
Language:
English
ECTS credits:
3
Contact hours:
48
Course Syllabus
Abstract
The role of the state in the economy is one of the central debates in political and economic thought. This course introduces students to the core principles of public economics, focusing on how governments design and implement economic policies to address market failures, income distribution, and public goods provision. The course explores key questions in public economic theory and policy: Why do governments intervene in the economy? How do taxation and public spending shape economic and social outcomes?
How do globalization and international institutions influence national fiscal policies? and etc.
Learning Objectives
- To develop analytical tools and their application to key policy issues relating to the spending, taxation and financial activities of the government.
- To introduce students to the main models and analytical tools of Public Economics
- To develop student’s ability to apply theoretical knowledge to the actual economic cases
Expected Learning Outcomes
- Analyse effects of taxation on labour supply
- Analyse functions of the government at different levels
- Analyse market failures.
- Analyse tax incidence and welfare loss
- Conduct cost-benefit analysis for government programmes
- Explain main functions of the government
- Explain the behavior of economic agents in political process
- Explain the role of social insurance and its types
- Explain the tendencies in government expenditures
- Know different approaches to social welfare
- Know main theorem and theories of Public Choice
- Know main ways to increase efficiency in Public Sector
Course Contents
- Introduction to Public Economics
- Market Failures
- Income, inequality and poverty
- Voting
- Rent-seeking
- Commodity taxation
- Income taxation
- Theories of the public sector
- Social Insurance and Welfare Programs
- Cost-Benefit Analysis
- Managing the Public Sector's Assets and Liabilities
- Multiple Jurisdictions
Interim Assessment
- 2026/2027 2nd module0.15 * Midterm exam + 0.1 * Class Activity + 0.25 * Group project + 0.4 * Final Exam
Bibliography
Recommended Core Bibliography
- Economics of the public sector, Stiglitz, J. E., 2000
- Hindriks, J., & Myles, G. D. (2013). Intermediate Public Economics (Vol. Second edition). Cambridge, Massachusetts: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=564828
Recommended Additional Bibliography
- Economics of the welfare state, Barr, N., 2012
- Public choice III, Mueller, D. C., 2007