Social Insurance and Income Maintenance

5 Credit Points

Short description

In this module students become familiar with the main issues in designing a scheme of social insurance, income maintenance and income redistribution. They learn how to apply standard microeconomic tools for comparing different policy options. The module concentrates on three topics: First, the consequences of (adverse) selection and moral hazard for demand and design of public insurance. Second, the methods of measuring the extent of income inequality and poverty. Third, the distributional and behavioral effects of redistributive tax-and-transfer systems (e.g. negative income tax, nonlinear income taxation).

Qualification Goals

Students are familiar with advanced analytical methods in public economics. They understand the main topics relevant for designing systems of social insurance and income maintenance and the microeconomic methods for comparing various policy options. They know how to apply these skills to specific examples and new topics.

Content

Reasons for and design of publicly provided insurance (e.g. adverse selection, moral hazard); measurement of income inequality and poverty; distributional and behavioral effects of tax-and-transfer systems (e.g. negative income tax, nonlinear income taxation).

Components and semester hours per week

Lecture (2 semester hours per week) and supplementary study class (1 semester hour per week).

Frequency

Summer semester

Examination performance

Written examination (60 minutes).