Lecture: Behavioral Public Economics

First Lecture

The first lesson will take place on 12.04.2022.
The ILIAS course will be online in time for the first lecture.

Description

6 ECTS. Neoclassical economics assumes that individuals are rational actors and prescribes certain functions for the government based on that assumption: correcting externalities, providing public goods, regulating monopolies, among others. However, recent advances in behavioral economics have demonstrated the ways that individuals don’t always act in their own best interest; for example, individuals might be inattentive to the costs and benefits of a decision, or they might be short-sighted about the future. The field of behavioral public economics incorporates the possibility of these kinds of consumer mistakes into public policy. In this class, we will study fundamental questions of policy evaluation and design through a behavioral lens. What does socially optimal policy look like when consumers make systematic mistakes? We will address this from both a theoretical and empirical perspective, examining topics like healthcare, taxation, and nudges.

Language

English.

Prerequisites

Students should have a solid background in microeconomics and econometrics.

Assessment

Final written exam at the end of the course.

Meeting Times:

  • Lecture: 
    • Weekly, Tuesdays, 11:45-13:15, Room R512
  • Tutorial: 
    • 25.04.2022-23.05.2022: Weekly, Mondays, 17:00-18:30, Room F424
    • 20.06.2022-04.07.2022: Fortnightly, Mondays, 17:00-18:30, Room F424

There will be no lectures or tutorials from 30.05.2022-14.06.2022.