Economics for Public Policy

You may choose ONE of the two topics below. Part of the exercise is of course for you to figure out which lecture each topic relates to.

 

1. The London congestion charge. 

2. The relationship between lender and borrower in the context of the credit crisis of 2007/8.

 

Please choose the one that you can do the best.

These all the related topic lecture that you have to link into the essay.

The role of government in the economy and public finance. Market failures.

Externalities and ways of correcting market failure.

Externalities and property rights – Common property resources – Public goods.

Asymmetric information. The lemons market – Signalling – Moral hazard

Asymmetric information. The Principal-Agent problem in private and public enterprises – Managerial incentives – Efficiency wages in labour markets

Location effects of globalisation – Regional policy.

Social insurance and healthcare policy.

Labour mobility. Migration as human capital investment – Internal migration – Family migration – Immigration – Job mobility.

Competition policy – Pricing under market power – Cartels.

 

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