A course providing the theoretical knowledge necessary to understand the economics of public sector activity. Concepts discussed include Pareto optimality, public goods, externalities, public choice models, and cost-benefit analysis.

CILO-1: Analyze the criteria and methods for measuring welfare changes in different economic contexts and evaluate the implications of policy decisions on social welfare. CILO-2: Evaluate the impact of externalities and public goods on market outcomes and analyze different policy interventions, such as taxation and regulation, to improve welfare outcomes. CILO-3: Apply welfare economics principles to analyze the design of optimal taxation schemes that balance revenue generation and welfare considerations. CILO-4: Apply welfare economics principles to analyze voting systems and understand their implications on welfare outcomes.