Meeting Times
Lectures: 2 sessions/week; 1.5 hours/session
Recitation: 1/session week; 1 hour/session
Prerequisites
The prerequisite for this course is 14.01 Principles of Microeconomics.
Course Description
This course explores the role of government in the economy, applying tools of basic microeconomics to answer important policy questions. Topics include the government response to global warming, school choice by K-12 students, Social Security versus private retirement savings accounts, government versus private health insurance, setting income tax rates for individuals and corporations.
The course aims to provide an understanding of the reasons for government intervention in the economy, the extent of that intervention, and the response of private agents to the government’s actions.
Readings
The only required reading is my textbook: Gruber, Jon. Public Finance and Public Policy, Seventh Edition. Worth Publishers, 2022. ISBN: 9781319281106. [Preview with Google Books].
Requirements and Grading
- Exams: There will be a midterm exam worth 25% of the grade. There will be a final exam worth 50% of the grade during finals period.
- Problem sets: There will be six problem sets throughout the semester, each of which will consist of both mathematical exercises and essay questions. This requirement will be worth the remaining 25% of the grade. No late problem sets will be accepted for any reason. Grading will be based on the top 5/6 grades (lowest grade will be dropped).
