The module Welfare Economics contemplates the Theory of Market Failure from a public finance perspective and provides advanced methods for analysing public expenditure. Students shall learn to analyse fundamental problems of a welfare state in an independent manner and to assess the economic importante of central welfare institutions within a market economy.

The course content comprises, among others:

• Insurance role of the welfare state
• Market failure and insurance
• Ensuring labour income through the State
• Redistribution by means of income taxation
• Public supply of private goods
• Poverty alleviation