Today, the most pressing challenges for public economics are of macroeconomic nature: pensions, debt, income distribution, and fiscal sustainability. All these problems are compounded by the phenomenon of demographic transition and aging. This graduate textbook addresses these issues with the help of state-of-the-art macroeconomic tools that are based on a sound microfoundation and rooted in empirical evidence. Different from the standard partial-equilibrium analysis in traditional textbooks on public economics, the concept of general equilibrium helps to account for compensating or amplifying side-effects of economic policy.
GAUSS and MATLAB computer code as well as teaching material (slides) are available as downloads from the author's homepage.
Analyses contemporary public policy problems in the key workhorse models of macroeconomic theory
Provides quantitative public policy implications
Offers self-contained material for courses
Includes programs and data for all simulations and computations, downloadable as supplementary material
Burkhard Heer
Public economics Public finance Financial crisis Government debt crisis Pension policies Public pension system Taxation Income taxation Ramsey model Overlapping generations model OLG models Government consumption Debt Demographic transition financial crises