The objective of the course is to examine the role of the government in influencing individual behavior and the macro economy through fiscal policy, that is, government spending, taxation, and social insurance programs (such as social security and unemployment insurance). In this course we will develop and use a dynamic theoretical model of individual decisions and study how government tax and transfer policies, government debt and deficits affect these decisions. The theoretical predictions of these models will then be related to data and empirical findings.
1x2hr lecture/week, 1x1hr seminar/week
1x2.5hr Final exam (50%), 1x1.5hr Mid-semester test (40%), 1x500wd equivalent Problem sets (10%)