Today, the most pressing challenges for public economics are of
macroeconomic nature: pensions, debt, income distribution, and
fiscal sustainability. All these problems are compounded by the
phenomenon of demographic transition and aging. This graduate
textbook addresses these issues with the help of state-of-the-art
macroeconomic tools that are based on a sound microfoundation and
rooted in empirical evidence. Different from the standard
partial-equilibrium analysis in traditional textbooks on public
economics, the concept of general equilibrium helps to account for
compensating or amplifying side-effects of economic policy. GAUSS
and MATLAB computer code as well as teaching material (slides) are
available as downloads from the author's homepage.
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