Public Economics (Field 4)

EE444 Welfare Economics and Public Policy

3 (3-0-6)

Prerequisites: EE311

Welfare economics analyses social welfare, however measured, in terms of the economic activities of individuals in a theoretical society. It is essentially about judging the desirability of social outcomes. Using the normative concept of Pareto efficiency, positive outcomes are considered both in a partial and general competitive equilibrium environment. Much of the lecture time will be devoted to analyzing the relationships among these concepts, to evaluate how the allocation of productive factors contributes to the well-being of citizens, while effecting equity and economic efficiency within an economy.