Applied Welfare Economics,

Second Best Theory and Social Cost-Benefit Analysis

Paper 1: Part IIB.

The course outline provides information about aims & objectives and detailed readings for each of the lectures. Copies of PowerPoint presentations will be handed out at the lectures and posted below. Some supplementary notes will be posted below as we go along. Finally, four suggested supervision assignments are available.

PowerPoint presentations

Lecture 1
Lecture 2
Lecture 3
Lecture 4 (pdf)
Lecture 5
Lecture 6
Lecture 7
Lecture 8
Lecture 9 
Lecture 10
Lecture 11
Lecture 12
Lecture 13

Lecture 14
Lecture 15

Lecture 16
Lecture 17
Lecture 18

Lecture notes

Lecture note 1 (Introduction to Welfare Economics)

Lecture note 2 (Tax Incidence)

Lecture note 3 (Deadweight loss)

Lecture note 4 (Applications: DWL of the income tax and the incidence of agricultural subsidies)

Lecture note 5 (The General Theory of the Second Best)

Lecture note 6 (Production efficiency)

Lecture note 7 (Ramsey Taxes)
Lecture note 8 (Distribution and the optimal tax mix)
Lecture note 9 (Applications: Commodity tax reform and the design of the VAT)

Lecture note 10-11 (Externalities)

Lecture note 12 (Application: Green tax reforms)

Lecture note 13-14 (Social cost benefit analysis: Introduction)

Lecture note 15 (Social cost benefit analysis: Distribution)

Lecture note 16: (Social cost benefit analysis over time: Social discounting)

Lecture note 17: (Social cost benefit analysis over time: Ramsey optimal growth and uncertainty)