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Public Finance II (耶鲁大学, Philippe De Donder)
Economics 681b
Public Finance II
Spring 2008
Philippe De Donder
Mon, Wed. 3:30-4:50 philippe.dedonder@
Office hours: Tues 10-12, or by appointment
Room: 18B, 27 Hillhouse Ave.
Course Description:
Public economics is concerned with the role that governments play in the economy and
the lives of its citizens. There are two ways to assess this role: a normative one, that tries
to devise the optimal government intervention, and a positive one, that rather tries to
understand why it is that we observe certain (often non second-best optimal) public
policies. This course will consider both approaches in turn.
The first part of the course is devoted to the positive approach, and mainly to the
democratic determination of tax and transfers programs. The main tax program
considered is income taxation. On the expenditure side, we will look at public provision
of private goods, and at various social insurance programs, like social security, health
insurance and unemployment.
The second part of the course is concerned with the classical approach to public
economics, which tries to assess the normative properties of various government
programs and tax systems. We will cover in turn indirect taxation, income taxation,
taxation of savings, environmental taxation and the provision of public goods.
Main references:
The first part of the class will mainly
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