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 (Carl McPherson, 1st part of course) and (Felipe Lobel, 2nd part of course)

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 (Carl McPherson, 1st part of course) and (Felipe Lobel, 2nd part of course)

Syllabus

Lecture Slides:

Introduction (updated 2021) (tex) (figs&tables)

Theoretical Tools (updated 2021) (tex) (figs&tables)

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

Budget and Debt Analysis (updated 2021) (tex) (figs&tables)

Introduction to Taxes and Transfers and Inequality (updated 2021) (tex) (figs&tables)

Tax Incidence (updated 2021) (tex) (figs&tables)

Optimal Labor Income Taxation (updated 2021) (tex) (figs&tables)

Taxes and Labor Supply (updated 2021) (tex) (figs&tables)

Responses of Reported Taxable Income to Taxes (updated 2021) (tex) (figs&tables)

Corporate Taxation (updated 2021) (tex) (figs&tables)

Taxes on Capital and Savings (updated 2021) (tex) (figs&tables)

Public Policy Response to Coronavirus (2020 only) (tex) (figs&tables)

Externalities (updated 2021) (tex) (figs&tables)

Public Goods (updated 2021) (tex) (figs&tables)

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

Political Economy (updated 2021) (tex) (figs&tables)

State and Local Governments (updated 2021) (tex) (figs&tables)

Education (updated 2021) (tex) (figs&tables)

Social Insurance: Introduction (updated 2021) (tex) (figs&tables)

Health Insurance (updated 2021) (tex) (figs&tables)

Social Security and Retirement (updated 2021) (tex) (figs&tables)

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

Assignments:

ps1 (due date: February 24, 11:59pm) ps1 solutions (available after due date)

PRACTICE Midterm from Spring 2017 midterm 2017 solution

PRACTICE Midterm from Spring 2019 midterm 2019 solution

PRACTICE Midterm from Spring 2020 midterm 2020 solution

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

ps2 (due date: March 31, 11:59pm) ps2 solutions (available after due date)

ps3 (due date: April 21, 11:59pm) ps3 solutions (available after due date)

Final Exam 2017 final exam 2017 solution final grades statistics 2017

Final Exam 2019 final exam 2019 solution final grades statistics 2019

Final Exam 2020 final exam 2020 solution final grades statistics 2020