In this clas we will analyze the role that government plays in a market economy and the lives of its citizens. We will consider some reasons for government intervention in markets and study the impact of government programs on the behavior and welfare of its citizens. We will analyze some of the main economic challenges faced by modern societies in an increasingly globalized economy. The course will cover a wide range of controversial topics including taxation and expenditure policies, externalities and market failure, social security, public assistance programs and redistribution. We will also cover the role of local and state governments in the economy covering issues such as crime, urban development and education.
