Curs 2010-2011
Llicenciatura en Economia
Topics in Public Economics
OBJECTIVE
The objective of the course is to familiarize students with several topics in public economics, and to introduce them to the formal literature in economic policy. By studying specific articles, we will understand the reasons for state intervention and appreciate its impact in key domains. Student presentations during the discussion sections will complement the main lectures. By the end of the course, students should be able to appreciate the main questions behind contemporary economic policy problems as well as the formal approach to their analysis.
REQUIREMENTS
Sector Públic I and Microeconomia I & II.
SYLLABUS
Theme 1. Limits to public intervention. Public choice and political competition
Weimer, David L. and Aidan R. Vining (1992) Policy analysis concepts and practice, 2nd edition. Prentice-Hall. Chapter 6: "Limits to Public Intervention: Government Failures."
Theme 2. Education
"Competition between private and public schools, vouchers, and peer-group effects." D. Epple and R.E. Romano. The American Economic Review, Vol. 88 (1988), pp. 33-62.
"Private School Vouchers and Student Achievement: An Evaluation of the Milwaukee Parental Choice Program" Cecilia Elena Rouse. The Quarterly Journal of Economics, Vol. 113, No. 2. (1998), pp. 553-602.
Theme 3. Public provision of private goods
Epple, D. and Romano, R. E. (1996). "Public provision of private goods." Journal of Political Economy, 104(1):57-84.
Theme 4. Private provision of public goods
Bergstrom, T. L., Blumen, L., and Varian, H. (1986). "On the private provision of public goods." Journal of Public Economics, 29(1):25-49.
Theme 5. Discrimination
"Racial Bias in Motor Vehicle Searches: Theory and Evidence" John Knowles, Nicola Persico and Petra Todd. NBER Working Paper 7449, 1999.
http://www.nber.org/papers/w7449
"A New Look at Racial Profiling: Evidence from the Boston Police Department" Kate L. Antonovics and Brian G. Knight. NBER Working Paper 10634, 2004
http://www.nber.org/papers/w10634
Theme 6. Pension reform
Barr, N. (1998). The Economics of the Welfare State. 3rd. edition. Chapter 9.
Theme 7. The politics of climate change
The Economics of Climate Change: The Stern Review. Nicholas Stern. 2007.
http://www.hm-treasury.gov.uk/independent_reviews/
stern_review_economics_climate_change/stern_review_report.cfm
Theme 8. Housing
Barr, N. (1998). The Economics of the Welfare State. 3rd. edition. Chapter 14.
Theme 9. Health and health care
Arrow, K. (1963). "Uncertainty and the Welfare Economics of Medical Care." American Economic Review, 53(5):1941-1973.
Theme 10. Unemployment compensation
Atkinson, A. B. and Micklewright, J. (1991). "Unemployment compensation and labour market transitions: A critical review." Journal of Economic Literature, 29(4):1679-1727.
Theme 11. Energy policy
Borenstein, S. (2002). "The trouble with electricity markets: Understanding California's restructuring disaster." Journal of Economic Perspectives, 16(1):191-211
Newbery, D. M. (2002) "Problems of liberalizing the electricity industry." European Economic Review, 46:919-927.
PRESENTATIONS
A. GENERAL RULES
1. A presentation is mandatory and must be made in groups of no more than two people.
2. Each group must choose a topic that is appealing to its members. A list of topics is provided in section C, but other topics can be proposed whenever they are related, in a broad sense, with the theme of the course. The group must show that there exists enough information to prepare a good presentation.
3. Presentations will be evaluated according to their content and the clarity of the exposition. The evaluation will be based exclusively on the presentation in class. The qualification will help to adjust the final grade.
B. SPECIFIC INSTRUCTIONS FOR A GOOD PRESENTATION
1. All members of a group are responsible for the whole material of the presentation. The day of the presentation, a member of the group will be randomly chosen to present. During the presentation, a different member of the group may be asked for clarifications or to continue with the presentation.
2. A presentation should last around 15-20 minutes.
3. A first version must be shown to the TA for his approval at least one week before the date of the presentation. The TA will provide comments and suggestions, and may require a second meeting if necessary. No group can present without the authorization of the TA.
4. The goal of the presentation is to transmit one or two relevant ideas related to the topic. When preparing your presentation, remember that your fellow students (not the TA) are the audience. You do not need to show all you have read, but to explain as clear as possible the basic points of your message.
5. Students in the audience should participate with questions and comments. A presentation that motivates interesting comments or questions will be very positively valued.
6. The final exam may include questions about the material in the presentations. All students are responsible for asking questions and clarification during the presentation to ensure that the main points are well understood.
C. SUGGESTED TOPICS
1. Research and development in vaccination. How can we align private and social interests to provide an optimal level of investment?
2. Benefits and costs of patents (for society, for growth, for world inequality...)
3. Could we conceive education and health services as purely for-profit activities?
4. Is there a relationship between democracy and growth? If so, is it positive or negative?
5. Challenges and public policy proposals for a society that grows older.
6. Globalization and regionalism. Is there a relationship between them? Is it a paradox that they are both happening simultaneously?
7. The economics of smoking. Economic aspects of the anti-tobacco campaign.
8. Migration. The economic impact of migrants. Why do people migrate? How do they decide their destination country?
9. Education reform. Efficiency and equity aspects of the different systems for funding education.
10. Public and private responsibility. Where is the limit of individual responsibility? Where is the limit for government interference into private decisions?
11. Economic convergence and social convergence.
12. The relevance of fiscal fraud.
13. Pension reform (generically, in Spain, in Europe, ...)
14. Social capital and the development of modern societies. What do we mean by social capital? Why has it become increasingly important in moderns societies?
15. Regulation and energy policy.
16. How does climate change affect people?
17. Implication of climate change for growth.
18. Climate change costs for developed countries.