FIN 578

fall 2015

All Classes

Govt Market Economy

Credit: 2 hours.

Given the presumed efficiency of competitive markets, when might it be appropriate for government to intervene? This course reviews possible ?market failures? like externalities, public goods, taxes, monopoly power, adverse selection, and moral hazard. We show how each can reduce efficiency of private markets. We then discuss whether, when and how government can improve economic welfare using well-designed tax policy, social insurance, environmental regulation, or health policy.

Prerequisite: MAS BPP Concentration.

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