This advanced public economics course is designed to reach the highest level of academic rigour. It is mathematically intensive and builds on the mathematical preparation required for entry into the Economics Honours program. The course will also include coding exercises, though no prior programming experience is assumed. We will explore the role governments should play in the economy, with the goal of strengthening your ability to understand, extend, and communicate foundational models and analytical tools. Topics include the philosophical foundations of public economics, welfare analysis, key empirical patterns, labour income and consumption taxation, externalities, social welfare functions, capital taxation, and behavioural public finance.

Learning Outcomes

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

1. Identify, explain and analyze the fundamental rationales for government intervention.
2. Understand, specify, solve and make meaningful extensions to frontier models of taxation (including optimal taxation).
3. Obtain and use data to quantitatively implement models of optimal policy, integrating them with mathematical solutions.
4. Rigorously communicate economic intuition to a broad range of audiences orally and in written form, extracting precise intuition from the math.
5. Read and formally synthesise theoretical and empirical economic literature in recent economic journals.

Research-Led Teaching

The course will cover recent research in the area of public economics. Recent papers on taxation, education, social security, among other topics, will be provided in Canvas, some required and some optional readings. Theoretical papers will be taught by the instructor, with empirical papers presented by students with broader discussion.

Examination Material or equipment

The final exam is an invigilated closed-book exam run by the Examinations division. A non-programmable calculator is permitted. The midterm exam is in-class with the same rules except that printed materials will be allowed (no electronic devices of any form other than a non-programmable calculator).

Required Resources

There are no required books. Academic papers will be required, which are available through the ANU library.

Recommended Resources

Readings for each lecture are posted on Canvas. No additional resources are required.

Staff Feedback

Students will be given feedback in the following forms in this course:

• The solutions to problem set questions will be provided online and/or discussed in lectures upon release of results.
• Written comments, if relevant, will be included with the pieces of assessment returned to students.
• Verbal comments, if necessary, will be provided during consultation time.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Topic 1: Introduction to Public Economics
2	Topic 2: Tax Incidence
3	Topic 3: Efficiency Costs of Taxation
4	Topic 4: Welfare Functions
5	Topic 5: Equality of Opportunity
6	Topic 6: Optimal Income Taxation	Midterm exam
7	Topic 7: Housing Policy	Problem Set 1 Due
8	Topic 8: Discrimination
9	Topic 9: Commodity Taxation	Problem Set 2 Due
10	Topic 10: Externalities
11	Topic 11: Behavioral Public Finance
12	Topic 12: Review	Problem Set 2 Due

Tutorial Registration

There are no tutorials for this course.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Participation	10 %	*	*	2,3,4,5
Problem Sets	20 %	23/03/2026	31/03/2026	1,2,3,4,5
Class Presentation	10 %	*	*	1,2,4,5
Midterm exam	20 %	*	*	1,2,4,5
Final exam	40 %	04/06/2026	02/07/2026	1,2,4,5

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using 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. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Attendance and participation is required, with some limited occasional exemptions as stated in the course syllabus.

• Lectures will be delivered on campus. Lectures start in week 1. It is expected that students attend lectures whenever possible and come prepared to them. The handouts and other relevant information for each lecture will be available before each lecture in the Course Canvas Site.

Examination(s)

See assessments task 4 and 5.

Assessment Task 1

Participation

In each class, students engagement will be assessed. Assessment of this includes attendance, but also verbal engagement with both class exercises and more generally. Comments or questions will be judged on thoughtfulness but not correctness, as this is part of learning. One mark per week until 10 is reached (see course Canvas for detailed criteria included excused absences).

Assessment Task 2

Problem Sets

The problem sets engage with the theoretical content of the course. They will involve solving models, extending them, and implementing them numerically. There are strict rules about the use of artificial intelligence in these assessments, and understanding of the problem sets will be directly tested as part of the exams as a way of verifying this. All topics will be assessed, starting with the basics of welfare analysis, then income taxation, housing and discrimination, and other optimal tax topics. Problem sets are expected to be due on 23 March, 4 May and 25 May, with the best two of three counted.

Assessment Task 3

Class Presentation

Each student will be asked to present an empirical paper to the rest of the class. This will be one of the core readings. The student's job will be to read it in even greater detail, and teach it to the class. Precisely how to do this is up to the student, but they will certainly need to summarize all the key aspects of the paper. They will want to ask questions like: What precisely is the research question? Is that an important contribution? What empirical object are they trying to measure, or what does the paper claim to show? What is the identification strategy, and why does that work in theory? What are the required assumptions, and do you buy them? Presentations will be video recorded, which will enable later validation and verification of assessment if required (in accordance with point 7 in the ANU Student Assessment (Coursework) policy)

Assessment Task 4

Midterm exam

The midterm exam is an open-book exam. A non-programmable calculator is permitted, but no other electronics. The exam will consist of a mix of multiple choice, numerical/calculation and essay type questions to be answered in 180 minutes and will count 20% of the final grade. The midterm exam will assess all material covered up to the date of the exam. Scheduled for 31 March but may be moved if agreed to by all students. will be announced on Canvas at least one month in advance. Students are expected to check the Course Canvas Site regularly for announcements.

Assessment Task 5

Final exam

The final exam is an invigilated closed-book exam run by the Examinations division. A non-programmable calculator is permitted. The final exam is compulsory and non-redeemable, will consist of a mix of multiple choice, numerical/calculation and essay type questions to be answered in 180 minutes and will count 40% of the final grade. The final exam will assess all material covered in the course. The precise date will be announced in the official final examination timetable. Students are expected to check the Course Canvas Site regularly for announcements.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

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.

Hardcopy Submission

Hard copy submission is not allowed without express permission in advance by the instructor.

Late Submission

Late submission is not permitted. If an assessment task is submitted after the due date without a granted extension, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

The original submitted assignment, and any relevant feedback comments, will be made available in the Course Canvas Site as soon as the assignments are marked and the marks are released, no later than 2 weeks after the assignment is due. An announcement will be made in the Course Canvas Site.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

Resubmission of assignments is not permitted.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students