Introductory description

This module aims to train students in the theory and applications of public policy. It will equip students with various tools of analysis and skills that can be applied to selected theoretical and applied problems in the economics of public goods, public expenditure, externalities and taxation, as well as in aspects of political economy.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

This course is concerned with understanding the role of government in the economy through taxation, expenditure and regulation. This course will typically cover both the classic topics in this area, such as the provision of public goods, the design of taxation, and inter-generational distribution, as well more modern themes. In particular, we will focus on three of these. First, we will look at the political economy approach to public finance, which stresses that governments are not benevolent dictators, but take decisions via a political process, and thus may themselves take inefficient decisions; thus, we should be aware of “government failure” as well as market failure. Second, due to globalisation, the international dimension in government decision-making is becoming more important, especially on the tax side, with issues of mobile tax bases and tax competition. Third, many countries (although, so far, notably, not the UK) are undergoing a process of fiscal decentralisation; we will examine the fiscal relationships between central and local government, a topic known as fiscal federalism.

Learning outcomes

By the end of the module, students should be able to:

• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as: reviewing the relevant literature and evidence. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading and independent study
• Subject knowledge and understanding:…demonstrate general knowledge and understanding of public economics. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes, and independent study.
• Subject knowledge and understanding:…demonstrate familiarity with some applications of economics that have been specific to the study of public policy. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes, and independent study.
• Key skills:…ability to understand and manipulate simple economic models, and to read critically the empirical literature, in the area of public policy. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes, and independent study.
• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as: mathematical/statistical skills: use/application of mathematics and diagrams in economic analysis; understanding of statistical analysis of data. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading and independent study.
• Cognitive skills:… apply critical analysis to the topics of the module, formulate concepts and hypotheses, and show how they are tested in relevant literature. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes, and independent study.
• Professional skills:…review the relevant literature and evidence. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes, and independent study.
• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as: communicating their knowledge and understanding to others, verbally and in writing. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading and independent study.
• Subject-specific and Professional Key General Skills:...demonstrate proficiency in study and research skills such as: data skills: Use of library and internet as information sources. Knowledge of how to locate relevant data, extract appropriate data, analyse and present material. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading and independent study.

Indicative reading list

Please see Talis Aspire link for most up to date list.

View reading list on Talis Aspire

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Problem-solving
Abstraction
Policy evaluation
Analysis of incentives
Analysis of optimisation
Understanding of Uncertainty and Incomplete Information

Transferable skills

Students will have the opportunity to develop:
Research skills
Numeracy and quantitative skills
Written communication skills
Oral communication skills
Mathematical, statistical and data-based research skills