Public Economics Fundamentals: Market Failure, Externalities, and Public Goods

Do you want to understand the economic rationale behind taxes, subsidies, and regulation? Public Economics provides the framework for analyzing the state's role in resource allocation and welfare. This course demystifies the essential concepts of public economics, moving you from basic definitions to the ability to critically assess real-world policy responses to economic inefficiency and inequality. What you'll learn: * Understand the core definitions of market failure, including public goods, common resources, and monopoly power. * Analyze the causes and effects of externalities (positive and negative) and mechanisms for correction like Pigouvian taxation. * Practice applying foundational concepts like asymmetric information, moral hazard, and adverse selection in policy contexts. * Learn modern applications of policy analysis, including behavioral nudges and addressing digital platform market power. * Master the principles of welfare economics and efficiency criteria used to evaluate government spending programs. * Configure the theoretical conditions for optimal provision of public goods and analyze the free-rider problem. The course begins by defining core terminology and the conditions for market efficiency before diving into detailed analysis of various market failures and the associated government remedies, supported by written examples. This course is designed for absolute beginners in economics or public policy who seek a robust, text-based foundation in public economics. No prior knowledge of advanced economic theory is required. Start reading today and gain a clear understanding of the economic role of the state.