Econ 230A - Graduate Public Economics

Fall 2026 - Emmanuel Saez and Joe Shapiro


This is the first of two courses in the graduate public economics sequence at Berkeley. This one-semester course covers (I:SAEZ) introduction to public economics, optimal income taxation and redistribution, labor income taxation: behavioral responses to taxes and transfers, social security and disability insurance, tax incidence (II: SHAPIRO) Externalities and public goods, cost-benefit and welfare evaluation of policy, fiscal federalism. For each topic, we combine theoretical models with empirical evidence. Each lecture is posted in pdf format with linked references. The second half is taught by Joe Shapiro with course materials posted on Bcourse.
The source tex files and the pdf tables and graphs are also provided separately so that you can use and adapt this material for your own lectures (no permission needed). Many colleagues' lecture notes have contributed to the development of these slides over the years.

Syllabus

Lecture Slides:

Introduction and Road Map (updated)
 
pdf  tex  figures&tables

Optimal Labor Income Taxes and Transfers
 
pdf  tex  figures&tables

Labor Supply Responses to Taxes and Transfers
 
pdf  tex  figures&tables

Taxable Income Elasticities
pdf  tex  figures&tables

Social Security, Retirement, and Disability
pdf  tex  figures&tables

Unemployment Insurance (last updated 2023)
pdf  tex  figures&tables

Tax Enforcement (last updated 2023)

pdf  tex  figures&tables

Capital Income Taxation (last updated 2023)
pdf  tex  figures&tables

Assignments
:
ps1  (due date: October 12)  ps1 solutions (available after due date) 
Referee Report (due date: October 26)Instructions  2017 JEP paper on how to write an effective referee report   Looney  Deshpande et al.
2026 final exam: Monday December 7, 10:10am-12pm, Evans 648  
2023 final exam: exam and solutions  
2024 final exam: exam and solutions  
2025 final exam: exam and solutions