The Economics of Governments and Public Policy

Undergraduate

Fundamental questions in public finance concern when and how governments should intervene in the economy. However, another fundamental question is: why do governments do what they do? This course considers governments as economic actors. We will theoretically and empirically investigate how social decisions are made; why governments fail; why different levels of government (federal, state, local) fund different public goods and services; and how governments at different levels interact. Topics to be covered include externalities and public goods, political economy, and fiscal federalism. K-12 education in the United States will provide a detailed case study, though other applications may be considered from time to time. Course involves an empirical project.