Public Economics
juraj.nemec@umb.sk
juraj.nemec@econ.muni.cz

Main course goals
•A: To understand the role of the state (with the respect to the normative background of the
student)
•
•B: To know in detailed way and to understand „own – thesis based -specialisation“

Course requirements
•Written essay


Neoclassical view on the economic role of the state
•Allocative function (market failure):
•Distribution (welfare state, solidarity)
•Stabilisation (macro)
•Regulation (rule of law)
–
•

„Market failure“
•Competitive markets are expected to „produce“ first best, if:
•A: Individuals and firms behave rationally
•B: Full information exists
•C: Full competition exists
•D: Collective goods do not exist
•E: Externalities do not exist

„Government failure“: Public Choice
•General issues
•Voting rules
•Bureaucracy