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