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Economics of the Welfare State (6 LP)

This course discusses the Theory of Market Failure from a public finance perspective and provides advanced methods for analyzing public expenditure. Students shall learn to analyze fundamental problems of a welfare state in an independent manner and to assess the economic importance of central welfare institutions within a market economy.


  • Role of the welfare state

  • Market failure and insurance

  • Ensuring labor income through the State

  • Redistribution by means of income taxation

  • Public supply of private goods

  • Poverty alleviation