The actions people take are determined by potential welfare gains. Indeed, the gains from trade are what brings buyers and sellers together in markets. Unfortunately, however, not all private actions raise social welfare when markets are subject to taxes of other distortions. This course obtains general equilibrium shadow (or social) prices to identify welfare improving policy changes in these circumstances.
Upon successful completion, students will have the knowledge and skills to:
Students who successfully complete this course will:
- understand the different ways to measure welfare changes for individuals and know how to aggregate them;
- be able to properly interpret compensated welfare changes and know how they relate to actual welfare changes typically isolated in demand-supply diagrams;
- understand how to construct models and use general equilibrium analysis;
- use general equilibrium analysis to evaluate the welfare effects of policy changes in a coherent way and be able to explain the economic intuition for the results;
- be exposed to the applied welfare and public economics literatures and be able to relate the two literatures using conventional welfare economics tools.
See the course outline on the College courses page. Outlines are uploaded as they become available.
- three (3) hour exam at the end of semester
- two assignments - 25% in total
In response to COVID-19: Please note that Semester 2 Class Summary information (available under the classes tab) is as up to date as possible. Changes to Class Summaries not captured by this publication will be available to enrolled students via Wattle.
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Workload3 contact hours plus private study time.
Requisite and Incompatibility
Jones, C.M., (2005), Applied Welfare Economics, Oxford University Press, Oxford, UK.
Tresch, R.W., (2002), Public Finance: A Normative Theory, Elsevier Science Academic Press, San Diego and London, 2nd Edn.
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.
- Domestic fee paying students
- International fee paying students
Offerings, Dates and Class Summary Links
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