75575 - Economics of Welfare

Learning outcomes

The course provides the basic theoretical models which can be used to define economic welfare, to provide adequate measures thereof, and to assess the welfare effects of policy choices. Specific applications will be discussed with reference to the welfare implications of sustainability issues, including the definition of welfare indices, taxation, poverty, and social discount rates.

Course contents

1. Introduction: General perspectives on the economics of welfare (positive and normative ideas, utilitarianism and beyond, economics and justice, economics of happiness); welfare and economic welfare.

2. From welfare to economic welfare: utilitarianism, efficiency and social decision rules.

3. Basic models: Pareto optimality and the two fundamental theorems; the second best theorem; externalities.

4. (a) Welfare and policy under different traditions; (b) Welfare, sustainability and the population problem (c) Welfare, taxation and redistribution.

Readings/Bibliography

Basic theory is covered by any microeconomics handbook, like H.Varian, Microeconomic Analysis, Norton (any edition later than the second will do) or, at a more advanced level, A.Mas-Colell, M.D.Whinston and J.R.Green, Microeconomic Theory, Oxford University Press, 1995. Further references and a list of readings will be provided in class.

Teaching methods

This is a taught course with lectures

Assessment methods

The exam consists of (a) a short essay (max 5000 words) which is worth up to 1/3 of the overall grade (10 points), and (b) an oral discussion of the material covered in class, worth up to 2/3 of the overall grade (20 points). Students are required to register in advance for their oral exam through AlmaEsami according to the general rules of the University. Grading is on a 30 point basis, with minimum pass grade 18/30 (18-23: sufficient; 24-27: good; 28-30: very good; 30 plus distinction: excellent).

Teaching tools

Most lectures will involve topics presentation by the teacher and class discussions. Handouts will be available for students.

Office hours

See the website of Corrado Benassi