Acquiring a structured insight into the important functions of the state in modern market economies
Learning about the functioning and performance of the state and its interactions with markets
Understand and critically reflect recent developments and discussions concerning issues of the public sector like health insurance, taxation, pension systems.

This course provides basic knowledge of the functioning and the economic significance of the public sector with an emphasis on international aspects. Some of the topics to be dealt with in the course are: governmental decision-making on the national and international level, role and management of the state in times of globalisation and transnational threats like global warming and international terrorism, important issues pertaining to government expenditure, taxation, and activities (like public goods, international institutions, education, social security, health care), fiscal federalism (with an eye on European integration), and mechanisms of political influence (elections and lobbying). Those issues will be analysed from a normative - welfare economic - as well as from a positive - explanatory - perspective, with emphasis on the relevance and limitation of theory.

Rosen, Harvey S. And Gayer, Ted (2010). Public Finance, 9th (international) edition, McGraw-Hill/Irwin,
New York: NY. Note: Literature may change. Please contact course coordinator before buying the book.
Additional text in the form of scientific papers will be provided

Basic knowledge and understanding of microeconomics (level comparable to: course Microeconomics)
Exchange students need to major in economics.
an advanced level of English