Theory of economic policy

Standard microeconomic models usually assume perfect markets. However, in reality, market failures can be observed time and again, which requires targeted interventions in the economic process by means of state authorities. This lecture discusses the simplifying assumptions of perfect competition and deals with various aspects of market failure such as externalities, public goods and asymmetric information distributions. In the context of state price policy, instabilities in the market equilibrium and the instruments of minimum and maximum price are discussed. The last part of the course is New Political Economy, which applies economic theories to political processes. In the context of the accompanying exercise, the understanding of the above-mentioned main topics is deepened with the help of application-oriented exercises.

Participation requirements and grading

This course (7.5 credits) is a compulsory elective module in the Bachelor's degree programmes Economics, Business Mathematics, Economic Journalism, Industrial Engineering and Logistics as well as in the Master's degree programme WiWi for a teaching post at a vocational college and Master's degree programme SoWi for a teaching post at grammar schools/comprehensive schools (LABG 2009+2016). Complementary/minor subject in the Bachelor's degree programmes in Mathematics, Physics, Statistics, Applied Literature, Cultural Studies and Linguistics, Journalism, Educational Sciences as well as in the Master's degree programmes in Computer Science, Chemical Biology and Physics.
There are no formal admission requirements. However, a general interest in economics is an advantage.
Grading is based on a written examination (duration: 90 minutes).