European Public Finance

Aim of the Course:

The course aims at introducing the main public finance issues in the European Union. Students will learn how the revenues of the Union are generated and how they are spent. We will discuss the motivation and implications of the Brexit decision and various coordination problems with respect to public debt, taxation and environmental policy. Economic policy is discussed with simple models, which highlight the central problems.

Course Structure:

Week	Content
1-2 3	The European Union: History and Institutions The Budget of the European Union
4 5-7	Economic Analysis of the Brexit Process Sovereign Debt, Financial Crisis and Fiscal Integration in the EMU
8-10	Tax Competition or Tax Coordination in Europe?
11-14	European Climate Policy: Emission Trading and Green Deal

Prerequisites:

Students attending this course should have some basic knowledge in microeconomic theory.

Literature:

Relevant lecture notes will be provided.

Grading:

Grading is based on an optional midterm examination during the exercise class, an optional homework assignment and a mandatory final exam at the end of the semester. The optional midterm exam and the assignment can only improve (i.e. not deteriorate) the grade from the final exam.