UPADM-GP 140 – The Economics of Public Policy
NYU Wagner - Spring 2016
Tamer Abdelgawad
(tamer.abdelgawad@nyu.edu)
Course Description
The Economics of Public Policy analyzes the impact of public policy on the allocation of resources and
the distribution of income in the economy. In this course, you will learn how to use the tools of
microeconomics and empirical analysis to answer these questions: When should the government
intervene in the economy? How might the government intervene? And, what are the effects of those
interventions on economic outcomes? The course will include topics such as: income distribution and
welfare programs, taxation and tax reform, government debt, market failures, Social Security,
unemployment insurance and health insurance.
Time and Location
Tuesdays, 4:55 – 7:25 pm (class in two parts, with 10 minute break in between)
Bobst Library, Room LL138
Office hours by appointment
Course Requirements and Grades (100 points)
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Class participation (10 points): Attendance is mandatory. Missing any two classes will result in
the loss of 5 points. Missing three or more classes will result in the loss of all 10 points for class
participation.
Homework (15 points): Homework sets will be assigned during each class and are due at the
beginning of the following class. Homework sets will be graded on a ‘Satisfactory’/’No credit’
basis. You may work on the problems and discuss solutions in a group, but you must submit your
own individually-authored answers. Identical or near-identical homework answers (determined
at the discretion of the grader) will receive ‘No credit’. Missing any two homework sets, or
receiving ‘No credit’ on any two homework sets will result in the loss of 3 points. Any additional
missed or ‘No credit’ homework sets will result in the loss of 3 additional points each, up to 15
points.
Quizzes (75 points): There will be four quizzes that test your grasp of the course material up to
and including the previous class. No books, notes, or electronic devices may be used during the
quizzes (‘closed book’). Each quiz will be worth 25 points and I will drop your lowest quiz score
in calculating your final grade. There will be no makeup quizzes. If you miss one quiz for any
reason, it will be the one whose score is dropped.
Students with Disabilities
Students requiring accommodations should share their documentation with me within the first three
weeks of class.
Textbook
Jonathan Gruber, Public Finance and Public Policy, 5th edition, 2016.
Class Schedule
Make special note of the quiz dates – there will be no makeups. The topics and pacing may be modified
as needed. Numbers in parentheses indicate corresponding chapters from the textbook. Readings for
some later topics are TBD.
Date
Part one
Part two
1
26 Jan
Course Introduction
Tools of Public Finance (2, 3)
2
9 Feb
Externalities (5, 6)
Public Goods (7)
3
16 Feb
Cost-Benefit Analysis (8)
Political Economy (9)
4
23 Feb
QUIZ 1
Education (11)
5
1 Mar
Social Insurance (12)
Social Security (13)
6
8 Mar
Health Insurance I (15)
Health Insurance II (16)
7
22 Mar
QUIZ 2
8
29 Mar
Taxation (18)
Income Distribution and Welfare
Programs (17)
Tax Incidence and Equity (19)
9
5 Apr
Tax Inefficiencies (20)
Taxation of Business Income (24)
10
12 Apr
QUIZ 3
Fundamental Tax Reform (25)
11
19 Apr
12
26 Apr
13
3 May
Applications: The US Government
Budget (4)
Applications: Innovation Policy and
the Pharmaceutical Industry (TBD)
QUIZ 4
Applications: The Affordable Care Act
and Health Reform (TBD)
Applications: Environmental Policy and
Global Warming (TBD)
Course Wrap-up