Recent innovations in public economics have overturned previously accepted policy rules. This unit focuses on the modern treatment of public policies relating to taxation, pricing of public sector outputs and public investment. Emphasis is placed on how different informational capabilities and jurisdictions of the government impact on the design of policy. The areas of application in taxation include the design of efficient and equitable consumption taxes, the structure of income taxation and the appropriate mix of income and consumption taxes. In response to market failures, pricing and investment rules for public enterprises, the provision and pricing of public goods, and policy responses to externalities and information problems are covered.
1x2hr Final exam (50%), 1x1.5hr Mid-semester test (30%), Take-home assignments equivalent to 1000wds 20%),
(ECON6001 or ECON6701) and (ECON6002 or ECON6702)