SHEB406 Project: Public economics


This unit covers public economics in a broad sense. It discusses welfare issues, such as individual welfare measures and social welfare functions, issues that can be seen as foundations for public economics. Also, it covers different kinds of market failure and the dilemmas of public goods provision and externalities. This unit aims to enable students to understand and analyse public policy issues and take the perspective of government and non-government organizations as they attempt to alleviate societal problems. The aim of the course is to apply economic analysis to the role of the state, both from a positive perspective (describing the government, developing theories that predict how the economy will change or what the effects of different policies are) and from a normative point of view (evaluating alternative policies, weighing up the various benefits and costs in terms of efficiency and equity).

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Business Studies (Joint programme with The University of Sheffield)


Assoc. Prof. Eduard Marinov, PhD

Course Description:


Students who complete this course:

1) will know:

• the economic rationale for having a public sector

• the subjects presented during the course (i.e., the primary means of paying for government, policy applications such as social security reform, education policy, health insurance and tax reform)

1) will be able to:

• link the different subjects to each other and draw own conclusions about more complex public economics problems.

• measure the costs and benefits of government policies

• analyse and justify the methods of government intervention in the market place

Students are required to have the following knowledge and/or skills:

• Microeconomics

• Macroeconomics

Full-time Programmes

Types of Courses:

Language of teaching:


  1. Portfolio: The economic impact of a government policy
  2. Portfolio: Externalities and Public Economics


Recommended texbook

Rosen, H. and T. Gayer (2014) Public Finance. 10th edition, McGraw Hill (RG)

Additional textbooks

Gruber, J. (2010) Public Finance and Public Policy, 3rd edition, Worth Publishers.

Auerbach, A.J. and M. Feldstein, Handbook of Public Economics. Vol. 1-4. North-Holland.

Auerbach, A.J., Feldstein, M. and E. Saez, Handbook of Public Economics. Vol. 5. North-Holland.

Stiglitz, E, J. (2000) Economics of the Public Sector, 3rd edition, W.W. Norton