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EC426 Option Meeting

29 September 2011

Frank C

owell:

Frank C

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conomics

Econom

ics Public E

conomics

Public E

conomics

EC426 MSc Public Economics 2011/12

Frank CowellFrank CowellJonathan LeapeJonathan LeapeHenrik KlevenHenrik KlevenTony AtkinsonTony Atkinson

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Aims 1 To give you an appreciation of analytical methods in To give you an appreciation of analytical methods in

Public economicsPublic economics

Economic methods for: Economic methods for:

the study of the public sectorthe study of the public sector

the role of the State in principle the role of the State in principle

the role of the State in practicethe role of the State in practice

the role of economic policythe role of economic policy

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Aims 2 To provide a thorough grounding in principles of To provide a thorough grounding in principles of

Public EconomicsPublic Economics

Economic principles underlying Economic principles underlying

tax and social security designtax and social security design

provision of goods in the public sectorprovision of goods in the public sector

tax enforcementtax enforcement

the effective design of economic institutionsthe effective design of economic institutions..

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Aims 3 To enable you to understand the practical problems of To enable you to understand the practical problems of

Public economicsPublic economics

Focus on problems:Focus on problems:

in applying analytical methodsin applying analytical methods

in implementing economic principlesin implementing economic principles

in assessing the impact of state interventionin assessing the impact of state intervention

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Intended learning outcomes 1

By the end of the course you should be able to:By the end of the course you should be able to:

Discuss critically the major papers in the literature on Discuss critically the major papers in the literature on public economics and policy public economics and policy

Present a coherent argument orally and in writing on Present a coherent argument orally and in writing on topics in public economicstopics in public economics

Use methods of independent research to prepare a Use methods of independent research to prepare a short dissertationshort dissertation

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Intended learning outcomes 2

To apply economic analysis to key economic policy To apply economic analysis to key economic policy problemsproblems

To appreciate key debates in thinking about To appreciate key debates in thinking about contemporary economic policy problems.contemporary economic policy problems.

To have the background training necessary to function To have the background training necessary to function as an economic policy analystas an economic policy analyst

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Components of the course

Michaelmas term: core public economicsMichaelmas term: core public economics Role of public economicsRole of public economics

Market “failure”Market “failure” RedistributionRedistribution

Principles of design applied toPrinciples of design applied to TaxTax Social securitySocial security Public goodsPublic goods

Microeconomic analysis of policy Microeconomic analysis of policy IndividualsIndividuals CompaniesCompanies

Lent term: iLent term: issues in public economicsssues in public economics

ClassesClasses

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Michaelmas term lectures

1.1. Welfare analysis of state interventionWelfare analysis of state intervention2.2. Equity, social welfare and taxationEquity, social welfare and taxation3.3. Policy design: social insurancePolicy design: social insurance4.4. Policy design: income taxationPolicy design: income taxation5.5. Commodity taxationCommodity taxation6.6. Public goodsPublic goods7.7. Externalities and environmental policy Externalities and environmental policy 8.8. Taxation and companiesTaxation and companies9.9. International issues in taxationInternational issues in taxation10.10. Behavioural public economicsBehavioural public economics

Core public economics: Frank Cowell and Jonathan Leape

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Lent term lectures:

11.11. Taxes, transfers, and labour supplyTaxes, transfers, and labour supply12.12. Incomes and behavioural responses at the top of the Incomes and behavioural responses at the top of the

distributiondistribution13.13. Optimal low-income supportOptimal low-income support14.14. Wealth distribution and taxationWealth distribution and taxation15.15. Poverty, inequality and redistributionPoverty, inequality and redistribution16.16. Tax complianceTax compliance17.17. Who pays taxes? General equilibrium tax incidenceWho pays taxes? General equilibrium tax incidence18.18. Can welfare states compete in a global economy?Can welfare states compete in a global economy?19.19. Global public finance and the funding of the MDGsGlobal public finance and the funding of the MDGs20.20. A global deal on climate change and development? A global deal on climate change and development?

Issues in Public Economics : Henrik Kleven, Frank Cowell and Tony Atkinson

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Who does what?

Michaelmas termMichaelmas term

Lectures 1-5: Frank CowellLectures 1-5: Frank Cowell

Lectures 6-10: Jonathan LeapeLectures 6-10: Jonathan Leape

Classes: Sarah SandfordClasses: Sarah Sandford

Lent termLent term

Lectures 11-13: Henrik KlevenLectures 11-13: Henrik Kleven

Lectures 14-16: Frank CowellLectures 14-16: Frank Cowell

Lectures 16-20: Tony AtkinsonLectures 16-20: Tony Atkinson

Classes: Matthew SkellernClasses: Matthew Skellern

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Your role

ClassesClasses These start in week 3These start in week 3

In the second term you prepare presentations In the second term you prepare presentations and short talksand short talks

Essential part of preparation for the final exam.Essential part of preparation for the final exam.

The extended essayThe extended essay Wide range of possible topicsWide range of possible topics

Trains you in dissertation writingTrains you in dissertation writing

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Examinations

The examination has two componentsThe examination has two components

A three hour unseen paperA three hour unseen paper

An extended essay (dissertation)An extended essay (dissertation)

Each component carries equal weightEach component carries equal weight

Format and regulations for each component on the web Format and regulations for each component on the web site.site.

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Some features

Connection with STICERD Research ProgrammeConnection with STICERD Research Programme

Regular Taxation SeminarsRegular Taxation Seminars httphttp://fmg.lse.ac.uk/events/://fmg.lse.ac.uk/events/

Web materialsWeb materials Economics Website: Economics Website: http://http://econ.lse.ac.ukecon.lse.ac.uk// Electronic Library: Electronic Library: http://http://www.blpes.lse.ac.uk/ewww.blpes.lse.ac.uk/e-lib/-lib/ Website for this course: Website for this course: darp.lse.ac.uk/EC426/darp.lse.ac.uk/EC426/