Applied Welfare Economics

Course Code :2130TEWECP
Study domain:Economic Sciences
Academic year:2019-2020
Semester:1st semester
Contact hours:45
Credits:6
Study load (hours):168
Contract restrictions: No contract restriction
Language of instruction:English
Exam period:exam in the 1st semester
Lecturer(s)Bruno De Borger

3. Course contents *

This course introduces students to some of the most important principles of applied welfare economics, including:

  • Key concepts (the Pareto principle, efficiency and equity, social welfare, optimal welfare and welfare reform, etc.)
  • Evaluation of welfare changes at the individual level (surplus analysis, equivalent and compensating variations, dealing with interdependent preferences, etc.)
  • Aggregating individual welfare changes: social welfare functions, non-welfarist aggregation, multidimensional welfare
  • Insights from behavioural economics: reference-dependent preferences, loss aversion, framing, etc.
  • The relevance of general equilibrium for programme evaluation
  • Uncertainty and principal-agent problems
  • Indirect tax reforms
  • Issues in direct taxation
  • Cost-benefit analysis as applied welfare reform: principles of cost-benefit analysis (shadow prices, discount rates, treatment of wider economic benefits, etc.)
  • Applications of cost-benefit analysis