290037 Welfare Economics and Policy Analysis

Details
Institute of Food and Resource Economics
Earliest Possible YearBSc. 2 year
DurationOne block
 
Credits7.5 (ECTS)
Course LevelBSc
 
ExaminationFinal Examination

oral examination


All aids allowed

Description of Examination: Ordinary oral examination (25. min.) in course curriculum with 30 min. preparation time.

Weight: 100 percent



7-point scale, external examiner
 
Organisation of TeachingLectures, exercises and student presentations.
 
Block PlacementBlock 3
Week Structure: C
 
Teaching LanguageEnglish
 
Optional PrerequisitesMacroeconomics and Microeconomics
 
RestrictionsNone
 
Areas of Competence the Course Will Address
Competences obtained within basic science:

Understand basic welfare economics,

Comprehends economic arguments for market intervention, instrument design and analysis in respect of welfare effects, and basic political economy.

Competences obtained within applied science:

Apply principples of welfare economics and political economy on agricultural policy issues.

Competences obtained within ethics & values:

Is aware of the trade offs between efficiency and equity and direct distortionary costs and other costs.
 
Course Objectives
The objective of the course is to use economic theory (Welfare Economics, Public Choice and Public Finance) to explain the foundation of economic policy, the design and analysis of different policy instruments, and the process of policy-making. Overall the students will learn basic tools for future economic policy analysis.
 
Course Contents
The content of this course falls in four parts. First basic welfare economics like utility maximization, duality, and pare to efficiency is introduced. The idea is to establish the free market as a reference point for policy analysis. Second, two groups of welfare economic arguments for intervention will be presented and analysed. These arguments can be divided into efficiency-oriented arguments and non-efficiency-oriented arguments. The former group is based on policy-makers perceptions that markets are failing to perform adequately because of a long list of market failures like public goods, externalities, economic of scale, imperfect competition, transaction costs and imperfect information. The latter group of arguments is motivated by policy-makers concern with consequences of income distribution generated by the market. Third the design and consequences of various economic policy instruments will be presented and analysed in relation to the fulfilling of government objectives and the overall efficiency of resource allocation. As an analytical tool the concept of consumer and producer surplus will be introduced as the basis for analysing various revenue creating measures and regularly instruments. Fourth the course will focus on Public Finance and Public Choice. The former focuses on the taxing and spending activities of the government and their influence on the allocation of resources and distribution of income. The latter focus on the process of policy-making hence the relationship between government and different interest group on a political market place. Throughout the course agricultural policy will be used as a case showing the applied side of theories. As explanations of government intervention terms like multifunctionality and the farm income problem are explained. In relation to policy instruments numerous agricultural policy measures are analysed in relation to fulfilling objectives and resource allocation. On the revenue side taxes and tariffs are presented and on the expenditure side instruments like production reduction, price support and direct payments are presented. The agricultural policy-making process in the European Union and the United States are used to explain Public Choice and Public Finance.
 
Teaching And Learning Methods
The teaching is based on lectures that introduce the central and crucial elements of the curriculum. These central topics will further be touched upon in colloquies where the students will read, present and discuss various scientific articles. Furthermore there will be both theoretical and practical exercises in which the students can develop their understanding of the subject further.
 
Learning Outcome
Stipulated in "Areas of Competence the Course Will Address"
 
Course Litterature
Rosen, Harvey S. (2005). Public Finance. McGraw-Hill 1999. Boston.
+ around 200 pages of journal articles
 
Course Coordinator
Niels Kærgård, nik@life.ku.dk, Institute of Food and Resource Economics/International Economics and Policy Division, Phone: 35332264
 
Study Board
Study Committee NSN
 
Course Scope
lectures42
theoretical exercises28
preparation119
examination1
Colloquia8
Excursions8
project work0
supervision0

206