PS 626Economics and Public Policy II

This course focuses on the rationale for government intervention in a market economy. The course begins with a consideration of market successes through the analysis of the first and second theorems of welfare economics. The course then considers market failures through an analysis of distributional issues, public goods, externalities, non-competitive market structures, and asymmetric information. The role and degree of government intervention in health care, education, social assistance, employment insurance, and pension plans is also discussed.