Economy & Government

Economy & Government

(Wirtschaft und Staat), Bachelor, 5 ECTS

Course Type:  Lecture and Tutorial

Contact Person:

Period: Annually in winter semester

Content: Subject of this lecture is the analysis of public policy in a market economy.

Part I focuses on normative theory of public policy.  First, the reference model of a perfectly competitive economy is introduced. On this basis, central undesirable developments of a market economy will be made such as distortions of competition, lack of public goods, external effects, imperfect markets, information difficulties and market rigidity.  We discuss whether and how state intervention is an appropriate means to correct such undesirable developments.  Lastly, we discuss issues of equity and inequity as well as the implications for public policy.

Part II treats the positive theory of public policy.  Public decision making process is analysed with particular reference to its effects on size and composition of the national budget.  Following this, the implementation of collective decisions through governmental bureaucracy and alternative form of organisations is examined.  Particular importance is attached to the influence fed by individual interests on legislation and administrative action (lobbyism, rent-seeking).

Educational Objectives and Skills:  The students acquire knowledge of basic questions of public policy; understand that government interventions in the market economy are justified; learn to assess under which circumstances governmental interventions are non-beneficial; are able to critically reflect upon presented theorys; and develop an understanding for effects of financial and economic policy measures.

Language: German

 

Further information about this course can be found in the module handbook. For time and location please consult UnivIS, documents and materials are available on StudON.