Economics of Policy Issues

(3 Credit Hours) · Undergraduate

This module will provide an introduction to, and survey of, the theory of welfare economics. We will examine the broad philosophical and legal basis of a market economy, paying particular attention to the issues of property rights and the rule of law. We will then explore in some details the issue of collective benefits arising from public goods, highlighting the information problem associated with the optimal provision of such goods. This will be followed by a detailed discussion of externalities, where, among other things, we will study the different ways in which they are addressed: private solutions, public policy, and prohibition of markets.