This course examines the role of the government in the economy.  The aim of the course is to provide an understanding of the reasons for government intervention in the economy, the extent of that intervention, how government actions affect the economy including the response of private agents to these actions, and how the government finances its operations through taxation. Particular emphasis will be placed on issues of current policy relevance, such as environmental policy, health care reform, income tax reform, and budget deficits.

Course description coming soon!

The primary theme of this course is the use of economic theory to understand data, with particular emphasis on combining theory and empirics to inform the most important issues confronting modern policymakers. The modern economy, with pressures from globalization and demographic and technological change, has altered economic opportunity and incentives. We will examine critical policy choices that address the implications of these recent economic developments for firms, workers, and households using concepts from public finance and industrial organization. We will introduce policies such as income taxation of high income individuals, wealth taxation, transfers to low income workers, place-based subsidies, and the regulation of market power into standard models of labor supply, geographic mobility, and oligopoly. In each case, theory will guide the interpretation of data, and suggest the key empirical parameters needed to make informed policy.