Public Economics: Social Insurance and Government Expenditures

Catalog description

The first part of this course will examine the rationale for and economic impact (e.g. on saving, labor supply, etc.) of social insurance programs such as social security, unemployment insurance and disability insurance. The next major part of the course will explore these same issues for government interventions in health insurance markets. The course will then cover research on public goods, externalities, fiscal federalism, and econmic stimulus (including the government's recent response to the "Great Recession") before proceeding to an exploration of the government's role in K-12 and high education. Both theoretical and empirical evidence will be covered along with a mix of classic studies and more cutting-edge research. Throughout the course we will discuss the tradoffs - for example between the protection and distortion of social insurance programs -- that influence government's optional role. While the focus will be on evidence from the U.S., some research from other industrialized and developing countries will also be covered.