Econ 131 - Undergraduate Public Economics

Spring 2025 - Taught by Emmanuel Saez


This course focuses on the role of the government in the economy. The aim is to provide an understanding of the reasons for government intervention in the economy, analyzing the benefits of possible government policies, and the response of economic agents to the government's actions. The course covers tax policy and inequality, social insurance programs, public goods, environmental protection, and the interaction between different levels of government. Special emphasis is on current policy issues such as tax reform and inequality.


		
		Each lecture is posted in pdf format with linked references. There is no required textbook. The source tex file and the pdf tables and figures are also provided separately so that you can use and adapt this material for your own lectures (no permission needed). Slides will be updated about 1 week before each lecture 


		
		Lecture attendance and quizzes/polls managed through  i-clicker cloud 	


		
	 B-course website (lecture recordings and messages)
				
						
	

Syllabus 
	
	
	

Lecture Slides:

	
	
Introduction (updated 2025)   
		 (tex) 
		 (figs&tables)
	
	
Theoretical Tools (updated 2025)  
	 (tex) 
	 (figs&tables)
	

	
Budget and Debt Analysis (updated 2025) 
	 (tex) 
	 (figs&tables)
	
	
Introduction to Taxes and Transfers and Inequality (updated 2025)  
	 (tex) 
	 (figs&tables)
	
	
Tax Incidence (updated 2025)  
	 (tex) 
	 (figs&tables)
	
	
Optimal Labor Income Taxation (updated 2025) 
	 (tex) 
	 (figs&tables)
	
	
Taxes and Labor Supply  (updated 2025)  
	 (tex) 
	 (figs&tables)
	
	
Taxable Income Responses to Taxes (updated 2025)    
	 (tex) 
	 (figs&tables)
	
	
Corporate Taxation  (updated 2025) 
	 (tex) 
	 (figs&tables)
	
	
Taxes on Capital and Savings (updated 2025)  
	 (tex) 
	 (figs&tables)
		
	
Externalities    
	 (tex) 
	 (figs&tables)
	
	
Public Goods   
	 (tex) 
	 (figs&tables)
	
	
Cost-Benefit Analysis (not covered in class) 
	 (tex) 
	 (figs&tables)
	
	
Political Economy       
	 (tex) 
	 (figs&tables)
	
	
State and Local Governments     
	 (tex) 
	 (figs&tables)
	
	
Education  
	 (tex) 
	 (figs&tables)
	
	
Social Insurance: Introduction   
	 (tex) 
	 (figs&tables)
	
	
Health Insurance     
	 (tex) 
	 (figs&tables)
	
	
Social Security and Retirement   
	 (tex) 
	 (figs&tables)
		
	
Unemployment Insurance, Disability Insurance, Workers' Compensation 
	 (tex) 
	 (figs&tables)
			
	
		
	
	

Assignments:

	
	
ps1  (due date: March 5, 11:59pm)  ps1 solutions (available after due date)
	
		
		
				
		
							
								
													
														
PRACTICE Midterm from Spring 2021
													  
															  midterm 2021 solution 
															
															
PRACTICE Midterm from Spring 2022
																		  
																				  midterm 2022 solution 
																				
																				
																				
PRACTICE Midterm from Spring 2023
																							  
																									  midterm 2023 solution 
																				
										
	
Midterm  (in class 5:10pm-6:30pm: March 12)  midterm solutions (available after midterm) 
				
	
ps2  (due date: April 2, 11:59pm)  ps2 solutions (available after due date)
		
		
ps3  (due date: April 30, 11:59pm)  ps3 solutions (available after due date)	
		
				
Final Exam (Friday 3-5pm: May 16) 
					  final exam solution
					 
					
					
								
								
Final Exam 2021 
									  final exam 2021 solution
									  grades statistics 2021	

									
Final Exam 2022 
									  final exam 2022 solution
									  grades statistics 2022	
									
									
Final Exam 2023 
										  final exam 2023 solution
										  grades statistics 2023