Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should understand the welfare economic foundation of public policies; be able to analyse the pros and cons, costs and benefits of economic measures and changes from the perspective of social welfare.
Synopsis A study of theories in welfare economics, including conditions for Pareto optimality, welfare criteria, social choice, consumer surpluses, second versus third best, externalities and public goods as well as problems of applying these theories to such areas as public utility pricing, optimal taxation, road congestion, medical care, X-efficiency, and price stability.
Assessment Assignment: 20% + Oral presentation: 20% + Examination (3 hours): 60%