Our two mandatory courses in national public economics enable you to formally analyze the role of governments in the economy using neoclassical models and theory.

Economics of the Welfare State

The course in Welfare Economics discusses the Theory of Market Failure from a public finance perspective and provides advanced methods for analyzing public expenditure. Students shall learn to analyze fundamental problems of a welfare state in an independent manner and to assess the economic importance of central welfare institutions within a market economy.

Topics:

• Role of the welfare state

• Market failure and insurance

• Ensuring labor income through the State

• Redistribution by means of income taxation

• Public supply of private goods

• Poverty alleviation

Optimal Taxation

Public Finance theories on optimal taxation as a part of Governmental Accounting are a fundamental component of this course. Based on the contents taught, the students obtain a deep understanding of the workings of taxes. Students learn about the relevant interest conflicts of taxation and discuss them from an economic perspective. Upon successful completion of this course, students will be able to provide economically founded recommendations in order to develop and analyze taxation theory and policy instruments.

Topics:

• Optimal taxation theory

• Tax incidence analysis

• The excess burden of taxation

• Design of tax systems and tax reform

• Conflict of interests between efficiency and redistribution

• Taxation of external effects