Objectifs

This course studies the role of the government in the economy. The aim is to provide an understanding of reasons for government intervention in the economy, analyzing the benefits of possible government policies, and the responses of economic agents to the government's actions. The first part of the course covers tax incidence, theories of optimal labor tax, labor supply responses to taxes, and responses of taxable income to taxes. The second part covers market failures and government interventions. We will cover labor taxation, capital taxation and corporate taxation in the first part, as well as topics on externalities, public goods, development, and specific areas of public spending such as health insurance, retirement policies, unemployment insurance, or public spending on education in the second part.

The class will combine lectures from Profs Fourati and Rubolino, presentations of recent research work by researchers in public economics, and presentations of research papers by students from the class.

Contenus

This is an hybrid class, implying that the first half of the lectures will be in person and the second half will be in person. The course outline indicates whether the class will be taught in person or online.

The structure of the class in person will be as follow:

Lectures – Wednesdays 9,30 am to 12 am (Location: Internef 125)

Each class consists of:

1. 1. Theoretical section will be pre-recorded videos

- The videos cover an important topic in the field of Public Economics.

- The videos will be shared one week before the class on Moodle

- Students are expected to watch the videos before the in-person classes.

1. 2. Empirical section

- Exercises and group brainstorms will be organized at the beginning of the online classes covering the pre-recorded videos.

- The professor will present a research paper on the topic covered in the theoretical section.

- Students will present research papers on the topic covered in the theoretical section.

The structure of the class online will be as follow:

Lectures – Wednesdays 10 am to 12 am (Zoom link available on Moodle)

Each class will consist of:

1. 1. Theoretical section will be pre-recorded videos

- The videos cover an important topic in the field of Public Economics.

- The videos will be shared one week before the class on Moodle

- Students are expected to watch the videos before the online classes.

1. 2. Empirical section

- Exercises and group brainstorms will be organized at the beginning of the online classes covering the pre-recorded videos.

- We will present a research paper on the topic covered in the theoretical section.

- Students will present research papers on the topic covered in the theoretical section.

Course outline

The classes will cover the following topics:

Part 1: Introduction and theory of optimal taxation

Class 1 (Feb 22): Introduction to public economics – in person

Class 2 (March 01): Tax incidence – in person

Class 3 (March 08): Optimal labor tax – in person

Class 4 (March 15): Capital taxation and corporate taxation – in person

Class 5 (March 22): Education Policies and Public Spending on Education – in person

Class 6 (March 29): Unemployment Insurance – in person

Class 7 (April 05): Two guest lectures by researchers – in person

Part 2: Market failures and government interventions

Class 8 (April 19): Externalities and Public Goods – online

Class 9 (April 26): Public Economics and Development – online

Class 10 (May 03): Special session on Thomas Piketty's book "Capital in the 21st century" – online

Students will team up to present chapters of the book

Class 11 (May 10): Cost / benefit analysis and Political Economy – online

Class 12 (May 17): Social Insurance and Health Insurance – online

Class 13 (May 24): Preferences for redistribution – online

Class 14 (May 31): Special session on a public economics conference – in person

Combating Inequality: Rethinking Policies to Reduce Inequality in Advanced Economies

Students will team up to present sessions of the conference

Références

Jonathan Gruber, Public Finance and Public Policy, 6th edition, Macmillan, 2019 is an optional textbook (the slides follow the Gruber book). The other readings discussed in the lecture notes can be found in the reference list for each lecture. The pdf of the papers will be posted on Moodle.

Pré-requis

Students should be comfortable with undergraduate microeconomics and econometrics classes.

Evaluation

1ère tentative

Examen:

Ecrit 2h00 heures

Documentation:

Non autorisée

Calculatrice:

Autorisée

Evaluation:

The evaluation will consist of a final exam and papers presentation:

- The final exam (2h) will be a closed book. The exam will consist of multiple-choice questions and questions related to the lectures. It will cover the content of all lecture notes but not students' presentations or guest speakers' presentations. The grade will account for 60% of the final grade.

- Presentations (30 minutes). Students will present

- Presentation 1. Research papers. (20%) The presentations will be done live by the students during the class. Evaluations criteria for these presentations will be presented in class.

- Presentation 2 (10%). Students will chose between:

• A book chapter from T. Piketty's book – Class 10
• A summary of a conference talk – Class 14

- In-class Participation (10%)

- Class attendance (with video on for online classes ! J)

- Class participation

Rattrapage

Examen:

Ecrit 2h00 heures

Documentation:

Non autorisée

Calculatrice:

Autorisée

Evaluation:

The retake exam is 100% integrative.