Economic policy

In the introductory part of the course, students gain knowledge about the basics of the formal micro economic theory, with special emphasis on the rationale for policy interventions to the –otherwise- free workings of market processes. Later on students get introduced to consequences of the welfare state, regulations and the boundaries of state intervention. The second part of the course focuses on the concept of market failures and, in particular, on a specific kind of market failure that may lead to insufficient provision of innovation and knowledge in the economy. Different types of economic policy aimed at fostering innovation and knowledge production are reviewed and critically discussed.

After completion of the course, the student:

1. Has knowledge of and insight into the core concepts, theoretical frameworks and methodologies of economic policy

2. Can explain and apply microeconomic theory and methods determining the behavior of economic agents, industry, and markets.

3. Is able to apply microeconomic theory to identify and describe situations in which markets fail to deliver the best outcome from the private and social welfare point of view.

4. Is able to explain why market failures have crucial implications for the innovativeness and the overall level of investment in research and development of an economy.

5. Is able to identify and analyze economic policy tools the public sector can implement to correct market failures, especially in the innovation and sustainability domain.

You must meet the following requirements

• Registered for a degree programme other than
• HBO-TOP Applied Physics, Pre-Master

• Additional material
• Varian H.R., (2014), Intermediate Microeconomics: A Modern Approach, 9th ed., W.W. Norton \& Company, London