• Offered by Research School of Economics
  • ANU College ANU College of Business and Economics
  • Course subject Economics
  • Areas of interest Economics
  • Academic career UGRD
  • Course convener
    • AsPr Maria Racionero Llorente
  • Mode of delivery In Person
  • Offered in First Semester 2016
    See Future Offerings

This course uses the basic tools of microeconomics to analyse the role of government and the rationale for and design of taxation and  expenditure policy. Emphasis is placed on attaining a solid grasp of the basic theory of public economics. The topics to be covered include a review of basic microeconomics, welfare economics, cost-benefit analysis,  public goods,  externalities,  public choice, public expenditure programs (including education, health, pensions and welfare payments),  and taxation (including efficiency and equity issues, tax incidence, Australian tax policy, and fiscal federalism).

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

Upon successful completion of the requirements for this course, students should be able to:
• Identify and explain the principal forms of market failure that provide a justification for government intervention;
• Describe the main policy instruments used to mitigate market failures and explain the principles that guide their optimal use;
• Explain the limitations of government intervention - for instance, illustrate how the presence of information problems both explains the forms that policy intervention take and imposes limits on what can be achieved by it.
• Identify the trade-offs captured by public economics models; including the assumptions, relevance, and limitations of those models; including the assumptions, relevance, and limitations of those models.
• Analyse policy problems and assess arguments appearing in the policy debate.

Other Information

See the course outline on the College courses page. Outlines are uploaded as they become available. 

Indicative Assessment

Take-home assignments, a mid-semester examination and an end-of-semester examination. Details to be determined at the commencement of the course.

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.


10 hours (including 3 contact hours per week)

Requisite and Incompatibility

To enrol in this course you must have completed or concurrent enrolment in ECON2101/2111 Microeconomics 2 (P or H).



Tuition fees are for the academic year indicated at the top of the page.  

If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.

Student Contribution Band:
Unit value:
6 units

If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees.  Where there is a unit range displayed for this course, not all unit options below may be available.

6.00 0.12500
Domestic fee paying students
Year Fee
2016 $3480
International fee paying students
Year Fee
2016 $4638
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

The list of offerings for future years is indicative only.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.

First Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
2657 15 Feb 2016 26 Feb 2016 31 Mar 2016 27 May 2016 In Person N/A

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