UCL Department of Economics


ECON7005 - Economics of the Public Sector

Term 2



To provide students with an understanding of the economics of public goods, public expenditure and public services, and with the ability to analyse and understand key issues in this field using standard tools of theoretic and empirical economic analysis, corresponding to the level taught in core second-year economics modules.


At the end of the module, students should:

  • have a knowledge of the dimensions and functions of the public sector in at least one country, and an appreciation of the normative arguments which might define the economic borders of the state;
  • have a clear understanding of the economic theory of public goods, and of the problems which arise in making efficient decisions about public goods provision;
  • have a clear understanding of the role of redistribution and of incentive problems that arise as a result of redistributive policy;
  • understand the economic issues concerning various aspects of the role of the public sector in the provision of education and other public services.
Taught by:
Stephen Smith
Suitable for:
2nd / 3rd year Economics (L100) and 3rd year Phil/Econ (VL51) students.
Prerequisites: ECON1001: Economics. Students should also have taken (or be concurrently taking) ECON2001:Microeconomics.
Maximum module enrolments: 90
Module Evaluation (Previous year): ECON7005
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