Denmark, Aarhus

Public Finance and Public Policy

when 17 July 2013 - 14 August 2013
duration 4 weeks
credits 9.9 ECTS

Throughout Europe public expenditures amount to around 45% of GDP. Tax revenues are at about the
same level. There is no doubt that government plays a major role in the economy and affects the lives of its citizens in
a dramatic way. What justifies this? Should the government intervene in the economy and if so when? How should it
do so? What are the effects of such interventions? More specifically, the course subject areas are:
1. When Do Markets fail?
2. Externalities and Public Goods
3. Taxation and Efficiency
4. Asymmetric Information and Efficiency: The Case of Health Care
5. Dynamic Aspects of Public Finance: The Case of Social Security

Course leader

Theodore Palivos

Target group


Course aim

Upon completion of this course, students will be able to:
1. Measure welfare changes resulting from economic policies
2. Identify situations where market might fail to deliver the best outcome
3. Examine ways in which the government can correct a market failure
4. Analyze the impact of changes in public expenditure and taxation policies
5. Learn the particular conditions that prevail in the Health Care market and in the Social Security program

Fee info

EUR 0: Students on a bilateral exchange programme do not have to pay. Freemovers are obliged to pay participation fees while tuition fees only apply to freemovers from countries outside the EU/EEA/Switzerland.