ILRLE 4426 - Economic Analysis of the Welfare State

(crosslisted) ECON 3450

Spring. 4 credits. Letter grades only.

Co-meets with ILRLE 6420.

R. Hutchens.

Uses the tools of public economics to analyze modern welfare states. Although examples are drawn from several countries, the course focuses on the United States, Canada, and Sweden. What are the rationales for the level of government intervention in these states, and how do these rationales square with notions of market failure? What are the economic costs and benefits of taxes, transfers, and regulations in these states? Can voting models explain the growth and operation of welfare states? The possible answers to these questions are discussed.