Course Information
Course title
 Economic Policy Analysis 
Semester
 112-2 
Designated for
 COLLEGE OF SOCIAL SCIENCES  GRADUATE INSTITUTE OF ECONOMICS  
Instructor
 CHEUK SHING LEUNG 
Curriculum Number
 ECON5215 
Curriculum Identity Number
 323EU1880 
Class
  
Credits
 3.0 
Full/Half
Yr.
 Half 
Required/
Elective
 Elective 
Time
 Wednesday 2,3,4(9:10~12:10) 
Remarks
 Restriction: juniors and beyond OR Restriction: MA students and beyond
The upper limit of the number of students: 30. 
  
Course introduction video
 
Table of Core Capabilities and Curriculum Planning
 Table of Core Capabilities and Curriculum Planning
Course Syllabus
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Course Description

This course focuses on the introduction of dynamic modeling and its application for policy analysis. The aim is to provide an understanding of the reasons for government policy intervention in the economy, analyze the benefits of possible government policies, and the response of economic agents to the government's actions. The course covers tax policy and inequality, social insurance programs, and public goods. Special emphasis is on current policy issues such as inequality and poverty, health care reform, income tax reform, and budget deficits. 

Course Objective
 The aim is to learn how to solve dynamic optimization problems and how to apply to policy analysis. 
Course Requirement
 Basic Calculus  
Student Workload (Expected weekly study hours before and/or after class)
  
Office Hours
  
Designated reading
  
References
  
Grading
    
Progress
Week
Date
Topic
Week 1
   Introduction to the Course and Detailed Overview of the Syllabus

- Introduction to key concepts and objectives of the course.
- Comprehensive walkthrough of the syllabus and course expectations.
- Overview of assessment methods and grading criteria. 
Week 2
   How should the resources be allocated 
Week 3
   Retirement Saving 
Week 4
   Aging Population and Declining Marriage  
Week 5
   Pension Systems 
Week 6
   Sex Ratio, One-Child Policy, and Economic Implications 
Week 7
   Inequality measures

- Understanding different measures of economic inequality.
- Analysis and comparison of various inequality indices. 
Week 8
   Pareto Distribution

- Examination of the Pareto Distribution and its applications.
- Statistical analysis and modeling using the Pareto Distribution. 
Week 9
   Welfare analysis

- Principles and techniques in conducting welfare analysis.
- Application of welfare analysis in economic policy. 
Week 10
   Constrained Optimization Review 
Week 11
   Optimal Linear Income Taxation

- Understanding the theory and principles of optimal linear income taxation.
- Analysis of its impact on economies and societies. 
Week 12
   Optimal Linear Income Taxation with labor supply responses

- Exploring the dynamics of labor supply responses to linear income taxation.
- Case studies and theoretical frameworks. 
Week 13
   Theories and Models of Optimal Progressive Taxation

- Introduction to optimal progressive taxation principles.
- Evaluation of progressive taxation models and their implications. 
Week 14
   Optimal Progressive Taxation with labor supply responses

- Analysis of labor market reactions to progressive taxation.
- In-depth study of economic and social outcomes of these taxation models. 
Week 15
   Exam Review 
Week 16
   Final Exam