Economic Policy
Exam inspection: took place Thu, Oct 08th 2009 (enrollment by email was mandatory).
The course presents the main normative foundations for governmental inerventions into markets, i.e., market failures (asymmetric information, externalities, natural monopolies) and distributional goals. Moreover, financing of such interventions and the positive analysis of political decision-making will be discussed.
The course will mainly draw on the following book.
- Stiglitz, J.E.: Economics of the Public Sector; W W Norton & Co, 2000.
Mandatory Readings:
- Sweeney/Sweeney (1977), Monetary Theory and the Great Capitol Hill Baby Sitting Co-op Crisis, Journal of Money, Credit, and Banking, Vol. 9 (1 part 1), 86-89.
- Hayek (1945), The Use of Knowledge in Society, The American Economic Review, Vol. 35 (4), 519-530.