This course covers the theoretical foundations of public economics, exploring key concepts such as fundamental theorems of welfare economics, public goods, externalities, moral hazard, adverse selection, tax incidence, and tax efficiency. The course begins with a discussion of theoretical tools in public economics and the efficiency of private markets. We then discuss inefficiencies associated with market failures and possible solutions. Next, we introduce a theoretical analysis of the effects of taxation. We analyze the rationales behind public unemployment insurance, health insurance, and pension insurance. We discuss the methods used to evaluate the efficiency of government spending. Finally, we apply theoretical knowledge to a discussion of some of the most important challenges of recent years: climate change, the Covid-19 pandemic and population aging.

This is a course with immanent examination character (PI), attendance is mandatory. Students may have a maximum of 2 absences.

Grading scale:
100%- 90% = Excellent
 89% - 80% = Good
 79% - 65% = Satisfactory
 64% - 51% = Sufficient
   50% - 0% = Inadequate