EC426 One Unit
Public Economics
This information is for the 2025/26 session.
Course Convenor
Prof Frank Cowell
Prof Johannes Spinnewijn
Dr David Seim
Availability
This course is available on the MPhil/PhD in Environmental Economics, MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Economics and Management, MSc in Environmental Economics and Climate Change, MSc in Environmental Policy, Technology and Health (Environmental Economics and Climate Change) (LSE and Peking University) and MSc in International Health Policy (Health Economics). This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
How to apply: These courses are intended for MSc Economics, MSc Economics (2 Year Programme), and MSc EME Students. Any external student must have successfully completed EC400 or EC451 in September and/or have approval of the Department of Economics.
Deadline for application: Please apply as soon as possible after the opening of course selection for all courses.
For queries contact: Econ.msc@lse.ac.uk
Requisites
Pre-requisites:
Students must have completed EC400 before taking this course.
Additional requisites:
In exceptional circumstances, students may take this course without EC400 provided they meet the necessary requirements and have received approval from the course conveners (via a face to face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information (econ.msc@lse.ac.uk) regarding entry to this course.
Course content
A graduate course in the principles of public economics and topics in public economics.
Principles of public economics cover: Welfare analysis; concepts of fairness, equity and efficiency; social welfare. Policy design: social insurance, income taxation. Taxation; household and firm behaviour. Public goods and externalities. Behavioural public economics; implications for welfare analysis and policy.
Topics in public economics may include: Behavioural responses to taxation. Empirical strategies in public economics. Poverty, inequality and optimal low-income support. Compliance problems. Inheritance and wealth taxation.
Teaching
1 hours of seminars in the Spring Term.
10 hours of seminars and 20 hours of lectures in the Winter Term.
20 hours of lectures and 9 hours of seminars in the Autumn Term.
This course has a reading week in Week 6 of Autumn and Winter Term.
Formative assessment
Normally two marked assignments per term.
Indicative reading
Most of the readings will be in the form of journal articles, but some use will also be made of the following texts:
• A Auerbach & M S Feldstein (Eds), Handbook of Public Economics, Vols I-III, North-Holland;
• A B Atkinson & J E Stiglitz, Lectures on Public Economics, McGraw-Hill, Updated Edition, 2015;
• R Boadway and K Cuff, Tax Policy: Principles and Lessons, Cambridge University Press, 2022
Assessment
Assessment Pathway 1
Exam (50%), duration: 120 Minutes, reading time: 15 minutes in the Spring exam period
Essay (50%, 6000 words)
Assessment Pathway 2
Exam (100%), duration: 120 Minutes, reading time: 15 minutes in the Spring exam period
MSc Economics & Management students must follow assessment path 2
All other students must follow assessment path 1
This course is IRDAP-enabled, meaning that resit and deferred assessments will take place in August 2026.
Key facts
Department: Economics
Course Study Period: Autumn, Winter and Spring Term
Unit value: One unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 11
Average class size 2024/25: 11
Controlled access 2024/25: YesCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.