Public Finance ΙΙ
In the course we analyze both how the government makes decisions and what decisions it should make. We examine the consequences of market failure: We investigate the optimal provision of goods with externalities and of public goods. We analyze the decision making process of the public sector. We examine voting as a decision mechanism and the tactical and strategic issues it involves. We analyze the basic tax instruments and the economics of tax evasion. Finally, we consider issues of economic efficiency and equity.