Economic Analysis of Inequality and Poverty

 

In this course, students learn how theoretical and empirical approaches in welfare economics and distribution theory can be used to measure, analyse and evaluate poverty, inequality and social exclusion in terms of economic policy. The course provides the basis for a deeper understanding of individual and social welfare and its political and normative dimensions.

The first part of the course focuses on the distribution of income and wealth. Classical measures of poverty and inequality are discussed and current research on the multidimensionality of welfare is included.

The second part of the course focuses on selected recent articles from the scientific literature on social choice theory, inequality measurement and poverty research. These papers highlight key normative and empirical challenges in the design of social policy.

Although the course is primarily focussed on the development of theoretical tools, empirical applications are also covered to enable transfer to real policy contexts.

Students who successfully complete this course will:

• be able to apply and critically reflect on key concepts and measures of inequality, poverty and welfare,

• be familiar with current literature on redistribution, social equality and poverty reduction,

• be able to carry out their own empirical analyses in the area of inequality and poverty,

• be able to understand and recognize the ethical implications and the trade-offs between different values (e.g. efficiency and equality) implied by different policy choices

 

The course builds on a set of core texts that introduce the main theoretical, empirical, and normative approaches to inequality and poverty:

• Atkinson, A. B. & Bourguignon, F. (eds., 2000): Handbook of Income Distribution I. Elsevier.

• Atkinson, A. B. & Bourguignon, F. (eds., 2014): Handbook of Income Distribution II. Elsevier.

• Mueller, D. C. (2003): Public Choice III. Cambridge University Press.

• Salverda, W., Nolan, B. & Smeeding, T. M. (eds., 2011): The Oxford Handbook of Economic Inequality. Oxford University Press.

In addition to these books, the course draws on selected peer-reviewed journal articles to discuss current debates, recent empirical findings, and real-world policy applications.

• The course usually takes place every winter semester.
• Further information and all relevant documents can be found on the Moodle course page.
• Enrolment for the Moodle course is open (no enrolment key).
• Language of instruction: English