This course does not use B-space. 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 health care reform, tax reform, and inequality.

Each lecture is posted in pdf format with linked references. 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

Sections' notes are posted online (Pavel Bacherikov) and (Yige Wang)

Each lecture is posted in pdf format with linked references. 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

Sections' notes are posted online (Pavel Bacherikov) and (Yige Wang)

Syllabus

Lecture Slides:

Introduction (updated 2022) (tex) (figs&tables)

Theoretical Tools (updated 2022) (tex) (figs&tables)

Empirical Tools (not covered in lectures) (tex) (figs&tables)

Budget and Debt Analysis (updated 2022) (tex) (figs&tables)

Introduction to Taxes and Transfers and Inequality (updated 2022) (tex) (figs&tables)

Tax Incidence (updated 2022) (tex) (figs&tables)

Optimal Labor Income Taxation (updated 2022) (tex) (figs&tables)

Taxes and Labor Supply (updated 2022) (tex) (figs&tables)

Responses of Reported Taxable Income to Taxes (updated 2022) (tex) (figs&tables)

Corporate Taxation (updated 2022) (tex) (figs&tables)

Taxes on Capital and Savings (updated 2022) (tex) (figs&tables)

Externalities (updated 2022) (tex) (figs&tables)

Public Goods (updated 2022) (tex) (figs&tables)

Cost-Benefit Analysis (not covered in class) (tex) (figs&tables)

Political Economy (updated 2022) (tex) (figs&tables)

State and Local Governments (updated 2022) (tex) (figs&tables)

Education (updated 2022) (tex) (figs&tables)

Social Insurance: Introduction (updated 2022) (tex) (figs&tables)

Health Insurance (updated 2022) (tex) (figs&tables)

Social Security and Retirement (updated 2022) (tex) (figs&tables)

Unemployment Insurance, Disability Insurance, Workers' Compensation (updated 2022) (tex) (figs&tables)

Assignments:

ps1 (due date: March 2, 11:59pm) ps1 solutions (available after due date)

PRACTICE Midterm from Spring 2019 midterm 2019 solution

PRACTICE Midterm from Spring 2020 midterm 2020 solution

PRACTICE Midterm from Spring 2021 midterm 2021 solution

Midterm (in class 5:10pm-6:30pm: March 9) midterm solutions (available after midterm)

ps2 (due date: March 30, 11:59pm) ps2 solutions (available after due date)

ps3 (due date: April 20, 11:59pm) ps3 solutions (available after due date)

Final Exam 2019 final exam 2019 solution grades statistics 2019

Final Exam 2020 final exam 2020 solution grades statistics 2020

Final Exam 2021 final exam 2021 solution grades statistics 2021

Final Exam 2022 final exam 2021 solution grades statistics 2022