Economic Policy and Public Choice

Lecture with Tutorial in WS 2022/2023

Prof. Dr. Bernhard Neumärker

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

Note on the retake: The EPPC exam SS23 will take place in the rooms of the PC pool announced by the examination office at the computers there via Ilias-Exam. The supervision of the exam takes place on site, accordingly students have to appear on site to participate in the exam. The exam is an Open Book format, i.e. students are allowed to use their own documents. However, communication and plagiarizing during the exam are not allowed.


Lecture: Prof. Dr. Bernhard Neumärker

Time:Wednesdays, 10:00 – 12:00 c.t.
Room:HS 3042 (Kollegiengebäude III)
Start:semester week 2 (1st lecture: Oct. 26th 2022)

Tutorial: Wiebke Kruse

Time:Tuesdays, 14:00 – 16:00 c.t.
Room:Max-Kade-Auditorium 2 (Alte Universität)
Start:Semester week 3 (1st tutorial: Nov. 8th 2022)

Supplementary Tutorials:

Sub-Tutorial Mandarin: Tong Wu

Time:Fridays, 16:00 – 18:00 c.t.
Room:R 101 (Breisacher Tor)
Start: Semester week 4 (1st tutorial: Nov. 18th 2022)

Sub-Tutorial English: Tong Wu

Time:Fridays, 14:00 – 16:00 c.t.
Room:HS 1236 (New Room!)
Start: Semester week 4 (1st tutorial: Nov. 18th 2022)

Sub-Tutorial German: Dominik Schröder

Time:Fridays, 14:00 – 16:00 c.t.
Room:R 106 (Breisacher Tor)
Start: Semester week 4 (1st tutorial: Nov. 18th 2022)

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“.

Course outline:

  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

Downloads & Content

  • Outlines and slides will be provided on this website
  • Literature will be provided on ILIAS
  • Password will be provided in the lecture and tutorial



Lecture Slides

Organizational Matters

Lecture Slides as presentation


Tutorial 1

Tutorial 2

Tutorial 3

Tutorial 4

Tutorial 5

Tutorial 6

Tutorial 7

Tutorial 8

Tutorial 9

Tutorial 10

Questions Tutorial

Information on online exam


English / Mandarin:

Sub-Tutorial 1 (corrected version)

Sub-Tutorial 2

Sub-Tutorial 3

Sub-Tutorial 4 (corrected version)

Sub-Tutorial 5

Sub-Tutorial 6

Sub-Tutorial 7

Sub-Tutorial 8

Sub-Tutorial 9

Sub-Tutorial 10 (updated 16.02.23)


Sub-Tutorial 1

Sub-Tutorial 2 (see English / Mandarin)

Sub-Tutorial 3

Sub-Tutorial 4

Sub-Tutorial 5 (see English / Mandarin)

Sub-Tutorial 6

Sub-Tutorial 7

Sub-Tutorial 8

Sub-Tutorial 9

Sub-Tutorial 10


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.


Have any questions?
Feel free to write an e-mail to