Economic Policy and Public Choice

Lecture with Tutorial in WS 2021/2022

Prof. Dr. Bernhard Neumärker

Albert-Ludwigs-Universität Freiburg
Götz Werner Chair of Economic Policy and Constitutional Economic Theory


Please be aware that this course will be held exclusively online asynchronous with videos. Lectures, Tutorials and Sub-Tutorials videos will be uploaded to ILIAS.


For the password of the slides on this page and for the password for ILIAS please send an informal mail to wipo(at) with the subject „EPPC password“. You can find the ILIAS course here: ILIAS

Lecture: Prof. Dr. Bernhard Neumärker

Start:Semester week 1

Tutorial: Dominik Schröder

Start:Semester week 2

Supplementary Tutorials: 

Sub-Tutorial: Mandarin, Lida Kuang

Start: Semester week 3

Sub-Tutorial: English, Julian Hübner

Start: Semester week 3


Have any questions? Feel free to write a mail to


Target Group and Language 

  • This course is designed for first-year students of the M.Sc. Economics program (economics and politics), the M.Sc. VWL program, and Diplom-Students (Hauptstudium). Exchange students are equally welcome to participate.
  • If students of other programs and faculties (e.g. political science) wish to participate, they should contact the tutor by email before the third week of the semester.
  • Recommended prerequisites: Good knowledge of microeconomics.
  • This module is entirely taught in English.



  • M.Ed. EF: „Theorien des strategischen Verhaltens und der Anreize“. Profile „Fachwissenschaftliche Vertiefung II“


  • M.Sc. Economics: First-year course for profile „Economics and Politics“.
  • M.Sc. VWL (PO2014): „Wirtschaftspolitik“ and „Constitutional Economics and Competition Policy“.
  • M.Sc. VWL (PO2011): „Wirtschaftspolitik (Ordnungspolitik)“.
  • M.Sc. BWL (Public and Non-Profit Management): „Volkswirtschaftslehre“
  • Diplom VWL: „Wirtschaftspolitik (Ordnungspolitik)“ and „Ordnungs- und Wettbewerbspolitik“.

Downloads & Content

  • Outlines and slides will be provided at this website.
  • Literature will be provided on ILIAS.



Lecture Slides (updated 08.02.2022)

Lecture Slides (page numbers like in Lecture videos) (updated 08.02.2022)


Tutorial 1

Tutorial 2

Tutorial 3

Tutorial 4

Tutorial 5

Tutorial 6

Tutorial 7

Tutorial 8

Tutorial 9


Sub-Tutorial 1

Sub-Tutorial 2

Sub-Tutorial 3

Sub-Tutorial 4

Sub-Tutorial 5

Sub-Tutorial 6

Sub-Tutorial 7

Sub-Tutorial 8


  1. Introduction
  2. Economic problems of economic policy
    1. Economic man and collective action
    2. Allocation and exchange
    3. Distribution and conflict
    4. Liberty and welfare
    5. Implementation and reform
    6. Stability and sustainability
  3. The public choice of economic policy
    1. Rational and behavioral public choice
    2. Positive and normative public choice
  4. Institutions and hierarchies of public choice
    1. Authoritarian policy formation
      1.1 Leviathan governments
      1.2 Autocratic regimes
    2. Democratic organization and voting rules
      2.1 Rational voting and basic voting systems
      2.2 Direct and representative democracy
      2.3 Legislature and Bureaucracy
      2.4 Interest groups, rent-seeking and lobbying
    3. Spatial hierarchy
      3.1 Federalism
      3.2 Supranational policy choice
  5. Liberal concepts of economic policy formation
    1. Ordoliberal design and Constitutional political economy
    2. Liberal paternalism
    3. New Ordoliberalism
  6. Application to special policy issues
    1. Redistribution in democracy
    2. Organizing the just welfare state
    3. Market regulation and privatization
    4. Constitutional budget constraints and their effects on economic policy


Introductory Textbooks:

  • Hillman, A.L.: Public Finance and Public Policy, 2nd Ed., Cambridge 2009.
  • Mueller, D.C.: Public Choice III, Cambridge 2003.

 Additional readings will be announced in the lecture and tutorial.