Economics 381

This module does not form part of Economics taken as a major subject. The role of the state in market economies is an important and controversial issue and is the  topic here. The module has three parts, namely Institutional Economics, Public Economics, and Environmental Economics:

• Economic research is showing increasingly that economic behaviour is determined largely by institutions (the extent to which the justice system protects property rights, for example, has a major impact on the extent and type of investment in an economy). Institutional Economics studies various formal institutions (e.g. laws, policy rules and contracts) and informal institutions (e.g. norms and habits) and their effects on economic behaviour and development.
• Public Economics studies the various forms of market failure that provide theoretical justification for government intervention in market economies, as well the phenomenon of government failure and its implications for such intervention. This subject also provides detailed analysis of the economic effects of financing government activity by means of taxes and government borrowing.
• Environmental concerns are becoming increasingly important for economic policymakers. Environmental Economics provides economic explanations for environmental degradation. It also studies policy measures to achieve more sustainable economic development by combating the incidence of such degradation.

Continuous assessment

Prerequisite modules (P): Economics 214, Economics 244 OR Prerequisite Pass modules (PP): Economics 281

Credits: 24

Classes per week: 2 lectures, 2 tutorials

Module convenor: Prof AI Jansen

Work programme: Institutional Economics

Work programme: Public Economics

Work programme: Environmental Economics