Le Grand Syllabus 2017/2018
ﬁle rather than for those who wish to prepare the administrative competitive examinations. (1) The course starts by introducing the discipline of public economics and present the different functions of government in modern market economies and how it evolved over the last century. (2) It then reviews basic microeconomic results in a world under perfect competition where the invisible hand is at work and where public intervention cannot be justiﬁed on the basis of efﬁciency. (3) We continue by studying the issue of taxation, notably : a the distinction between the statutory and economic incidence of taxes. b. how the government, under different constraints in terms of tax instruments, can raise that revenue at a minimal efﬁciency cost. We will then explore various causes of market failures and investigate to which extent public intervention can mitigate them. (4) The ﬁrst category of failures is externality. (5) The second category is public goods. We will deﬁne the different types of public goods and see how to best organize their provision. (6) The third category of market failure ﬁnd its root in asymmetric information, giving rise to adverse selection and moral hazard issues. We will look at applications in different markets and see how private information can justify the provision of social insurance, an increasingly prominent function of the government. (7) The fourth market failure, we will study is the issue of market power and concentrated markets. To do this, we will introduce tools and equilibrium concepts from game theory. We will go through a few applications of the principals we saw : (8) A lecture on education (9) Discrimination (10)We will conclude if time allow by investigating the consequences of behavioral issues, such as individual failure to optimize, for public economics. Required reading : Several chapters from : Hindriks and Myles (2013) Intermediate Public Economics 2nd edition, MIT Press ; Summers, L. (1989). “Some Simple Economics of Mandated 1668
Beneﬁts,” American Economic Review, 177-183 ; Moretti, Enrico "Estimating the Social Return to Higher Education : Evidence From Longitudinal and Repeated Cross-Sectional Data", Journal of Econometrics 121(1-2), 2004 ; Fack, G. et Grenet, J. (2010) When do Better Schools Raise Housing Prices ? Evidence from Paris Public and Private Schools », Journal of Public Economics, vol. 94, n° 1-2, p. 59-77 ; Liran Einav Amy Finkelstein, Selection in Insurance Markets : Theory and Empirics in Pictures, Journal of Economics Perspectives Vol. 25, No. 1, Winter 2011 (pp. 115-38).
PUBLIC POLICY : ANALYTIC AND COMPARATIVE APPROACHES
Semester : Autumn Number of hours : 24 Language of tuition : English
Opened to the exchange program
Teachers : Laetitia GREVERS (Teaching assistant), Colin HAY (Professeur des universités, CEE). Prerequisite : None. Pedagogical Format : Lecture alone Course validation : One 1500 word book or article review and one written examination of 3 hours' duration at the end of the course. Workload : There will one (or, infrequently, more) required readings as preparation for each of the two hour lectures. In addition, students will be required to read more broadly around the topic in which they intend to submit their book or article review and in preparation for the written examination at the end of the course. Pedagogical Method : One two-hour lecture per week for 12 weeks. Course Description : The module provides students with a general introduction to public policy-making and public policy analysis. It is organised in three sections. In the ﬁrst of these, students will be introduced to the core techniques of public policy analysis. The second section of the module is concerned with public policy dynamics - how public policy change occurs and how we might evaluate the success or failure of such change. A consistent theme is the evaluation of public policy and how such evaluation (and the policy learning it prompts) feeds into the evolu-