Module overview

Welcome to the course on Welfare Economics module.

This module explores the intricate connections between economic policies, welfare, and societal outcomes. We will focus on how welfare economics helps us understand the role of public policy in promoting social well-being. Welfare economics examines how economic activities and policies impact overall social welfare, particularly in addressing issues like inequality, poverty, and market failures. We will analyse how different policies, such as taxation, healthcare, and social security, affect income distribution and the well-being of various groups in society.

The course also considers public policy within a global context, addressing international challenges like climate change and economic inequality that require coordinated responses across borders. Ethical considerations are central to welfare economics, as policy decisions often involve trade-offs that impact fairness and justice. By the end of this course, you will have a solid foundation in welfare economics, enabling you to critically evaluate public policies and their broader social implications. You`ll be equipped to contribute thoughtfully to policy debates, understanding the complex interplay between economics, welfare, and society.

The main aims are:

• To introduce the concept of welfare economics and its applications to businesses
• To analyse the efficiency and equity implications of government interference in markets.
• To examine various aspects of the economy in the context of welfare and taxation
• To discuss the role of business in the formation of public policy

Indicative Content

Income Inequality, Public Policy for Fairness and Efficiency, Work, Wellbeing and Scarcity, Institution and Power, Market Failures, Public Policy and Behavioural Economics

Learning Outcomes Assessed

LO1 Discuss the rationale for the government intervention in the markets

LO2 Examine how government spending and taxation affect aggregate demand and supply

LO3 Evaluate the outcomes of government stabilization policies designed to correct macroeconomic problems.

LO4 Apply knowledge of the seminal literature in the areas of public goods, externalities, public choice, and taxation

Please also refer to your Course Handbook for a detailed outline of how this module forms part of your course.

Expectations

Specific expectations students can have of tutors:

Guidance and support – Your tutor will provide you with academic guidance and will help you reflect on your academic progress so that you get the most out of your studies. Your tutor and student support team will also provide advice in the broader network of specialist student support services at the University to help you have the best possible experience during your studies.

Confidentiality – Some information may be sensitive. Although it may be necessary to consult colleagues, University staff will treat such information as confidential and limit disclosures to the minimum.

Assessment marks and summative feedback – Assessment marks and summative feedback will be given within 15 working days from the assessment submission deadline.

Specific expectations tutors will have of students:

Engagement – You are expected to attend lectures and seminars and be punctual. You will get the most out of your support by working with your tutor and student support team. This partnership is a two-way process, and by taking part in it fully, you will gain more benefits from your experience at the University. Therefore, you are expected to participate actively and engage in in-class activities and inform the tutor by email when and if you are unable to attend any classes.

Preparation – You are expected to read any preparation material/attempt any practice questions before the workshop as per the instructions given.

Professional conduct – You are expected to behave professionally in classes and not cause any disruption that might affect other students’ learning. You are also expected to communicate with your tutors professionally.

Attempt all assessments – You are expected to attempt all assessments by the submission deadline unless there are extenuating circumstances (in which case, please get in touch with the mitigation team before the assessment deadline).

Full attendance – Latecomers to the seminars may be admitted up to 1 hour after the start. Students who need to miss a class must email their tutor. Mobile phones are not to be used during seminars. 

Preparing for your Assessment

A key part of your learning will be preparation for your summative assessment. You will be provided feedback on your formative assessments, and this will help you to better understand what is required of you when you submit your summative assessment. Please see below guidance on your formative assessment and how to access your feedback.

Assessment Support

Summative Assessments

Summative Assessment 1

Submitting, feedback & grades online using Blackboard

To assess inequality, economists often use a measure called the Gini coefficient. A measure of inequality of any quantity such as income or wealth, varying from a value of zero (if there is no inequality) to one (if a single individual receives all of it)

Instructions:

You are expected to produce an essay. You will need to access the following data.

• Go to the Blackboard and download the Excel file containing the data
• Choose two OECD countries (except the United Kingdom) that you would like to compare and filter the data so only the values for 1980 and 2014 are visible. Use this this data as the basis for your Lorenz curves.
• Using a Gini coefficient calculator calculate the Gini coefficient for each of your Lorenz curves.
• Calculate the 90/10 ratio of incomes for both countries
• Go to the OECD website to access the data. The countries are ranked from smallest to largest Gini coefficient on the horizontal axis, and the vertical axis gives the Gini coefficient.

Using your findings:

1. Compare the distribution of income across time for each country.
2. Compare the distribution of income across countries for each year (1980 and 2014).
   1. Suggest some explanations for any similarities and differences you observe. (You may want to research your chosen countries to see if there were any changes in government policy, political events, or other factors that may affect the income distribution.)
   2. Compare summary measures of inequality for all OECD countries on the OECD website. Compare inequality change over time using the World Inequality Database.

Source of data:

- Blackboard – Excel file

- Gini coefficient calculator – https://goodcalculators.com/gini-coefficient-calculator/

- OECD website – https://data.oecd.org/inequality/income-inequality.htm

- World Inequality Database - https://wid.world/world/#gptinc_p0p100_z/US;CN;WO/last/eu/k/p/yearly/g/false/0.36349000 000000004/0.8/curve/false/country

Tips: How to start an essay?

A good plan of attack is necessary to achieve a successful essay. Your essay will normally consist of an analysis which presents a series of points, in the form of an argument. Avoid a narrative or chronological approach. It is important that you present appropriate evidence and detailed case studies, but make sure that these support substantive points of your analysis.Do not include a description just to fill space.Think about the relevance of all parts of your essay to the question, and the logic of your conclusion. Sustained argument is essential to a successful essay. While showing awareness of different points of views, you should be able to do more than just present the opinions of others; you need to be able to show that you have developed your own view on the topic. Your essay should not consist simply of quotations and paraphrases from your reading.In general terms, your essay will have an introduction, a ‘body’, and a conclusion: The introduction is where you explain why the set question is worth studying.Perhaps the period is one of significant change, whose impact is uncertain; or perhaps this is a question historians disagree about; or there may be a particular event (for example, a revolution) whose causes need explanation.These are just a few examples,but there are many others. Your introduction may be the place to state a hypothesis you will test, or even the thesis which you intend to prove.Alternatively,you may prefer to save your conclusions until the end. In the introduction, you may also: introduce key definitions

summarise historical debate; and define your approach. Your introduction should not be too long, however — one to three paragraphs is a very rough guide.

The body of the essay is where you present your analysis and evidence. The conclusion is usually a single paragraph stating what you have contributed to the historical problem you introduced on the first page. If you defined a hypothesis, say whether you disproved or confirmed it. Do not repeat all the points you have made in the essay but concentrate on the larger question. What are the implications of your findings, and what new questions arise from your findings?

You need to demonstrate critical analysis. A good analysis typically involves breaking a problem down into its component parts. Whatever comparison you choose, your analysis is likely to involve presenting evidence which supports an argument and other evidence which challenges it. (Hint: it is usually best to introduce contrary evidence first, before countering it with evidence in support of your argument).

Submission Criteria:

Your submission must meet all the following criteria.

1. A 1,500 words (+-10%) essay with all the requirements listed above (excluding Title page, Table of Contents, References and Appendix).

1. Submit the essay electronically on time via Turnitin by due date and time.

1. Submission type: Check and comply with the assessments schedule in your Module Study Guide (MSG).
2. Be adequately proofread prior to submission, and therefore the work does not contain significant errors of spelling and grammar.

1. Please maintain the similarity to below 30%.

1. Ensure that font style to be consistent (e.g., Arial or Times New Roman) and font size should be 12 for body text. Font size of headings and subheadings should be consistent as well. Please refer to those academic journal and economics reports you have read if you are not sure about the font and presentation.

1. Line spacing should be 1.5 and alignment should be justified.

1. Heading and subheadings should be numbered appropriately.

1. Reference of all research material and sources (excluded from the word count)

Failure to meet any of the above criteria may result in a downward adjustment of the mark you are awarded; or disciplinary proceedings in the case of suspected plagiarism/cheating.

Main objectives of the Assessment

This assessment covers the following employability skills, which you could demonstrate on your CV and at job interviews if you successfully pass the assessment

• Communication

• Writing
• Speaking
• Presenting
• Non-Verbal
• Problem-solving
• Take initiative and self-motivation.
• Critical thinking
• Can work under pressure and to deadlines.
• Planning and organisation skills
• Team working
• Digitally literate
• Creativity/lateral thinking
• Time management
• Project management
• Intellectual curiosity
• Flexibility
• Interpersonal
• Leadership
• Perseverance
• Confidence
• Decision making

Summative Assessment 2

We already have taxes on alcohol, cigarettes, fuel, and sugar. Why not consider taxing other products?

Instructions: Create a poster that explores the idea of imposing an excise tax on a specific product (excluding sugar). This could include products like caffeinated beverages, fatty foods, junk food, or others. Your poster should analyse the economic implications of this potentially controversial policy.

You will need to submit your poster and reflective summary through Turnitin. Additionally, be prepared to give a 10-minute presentation about your work. Practice your presentation ahead of time to ensure you can effectively cover your content within the allotted time.

There is no strict guideline for how your poster should be designed or structured. Feel free to use your creativity and originality in your approach.

Submission Criteria:

Your submission must meet all the following criteria.

1. A 10 min presentation + 800 words refection with all the requirements listed above
2. Submit the presentation slides and reflection electronically on time via Turnitin by due date and time, present in the class.

1. Submission type: Check and comply with the assessments schedule in your Module Study Guide (MSG).

1. Be adequately proofread prior to submission, and therefore the work does not contain significant errors of spelling and grammar.

1. Please maintain the similarity to below 30%.

1. For the reflective summary ensure that font style to be consistent (e.g., Arial or Times New Roman) and font size should be 12 for body text. Line spacing should be 1.5 and alignment should be justified. Use your creativity for the presentation slides.

1. Heading and subheadings should be numbered appropriately.

1. Reference of all research material and sources (excluded from the word count)

Main objectives of the Assessment

Marking scheme:

Assessment criteria: Poster presentation

Reflective Summary

Employability Skills

This assessment covers the following employability skills, which you could demonstrate on your CV and at job interviews if you successfully pass the assessment:

• Communication
• Writing
• Speaking
• Presenting
• Non-Verbal
• Problem-solving
• Take initiative and self-motivation.
• Critical thinking
• Can work under pressure and to deadlines.
• Planning and organisation skills
• Team working
• Digitally literate
• Creativity/lateral thinking
• Time management
• Project management
• Intellectual curiosity
• Flexibility
• Interpersonal
• Leadership
• Perseverance
• Confidence
• Decision making

Learning materials

The reading list for this module is available on Blackboard in the module area and online by searching readinglists. This shows real-time availability of books in the library and provides direct links to digital items, recommended by your lecturer.

Remember to log into Blackboard daily to receive all the latest news and support available at your module information sites!

Subject guides are also available to help you find relevant information for assignments, with contact details of the Subject Librarian for your School.