https://studiegids.vu.nl/en/courses/2025-2026/E_EC_EWSBy the end of this course, students should have acquired the following skills:know how economic hypotheses that are relevant in welfare state economics and insurance economics can be formulated adequately and tested empirically, and draw policy conclusions from this. (Academic and research skills)understand the relevant literature in the field of welfare state economics and recognize important contributions to the this literature. (Bridging theory and practice – knowledge)can use relevant concepts – both theoretical and empirical – to address real-life dilemmas in the design of welfare state programs, in particular the key equity and efficiency arguments that pertain. (Bridging theory and practice – application)can present and communicate their own research findings and those from other studies. (Professional social skills)can meaningfully use insights from welfare state economics when addressing pertinent social and societal problems. (Broadening your horizon)can independently identify and fill in gaps in their knowledge of welfare states, in order to acquire the skills that are needed to become a professional. (Self-awareness)Governments implement welfare state programs to protect their citizens to social risks such as falling sick, becoming unemployed, ageing or the occurrence of health costs. These programs, that range from public benefits to the regulation of private insurance markets, may have a strong impact on the income, well-being and the behavior of individuals. Welfare state programs are typically justified by equity and public responsibility, but at the same time the growth of public expenditures forces governments to make more efficient use of existing resources. This gives rise to a tension between equity and efficiency considerations. This course provides an economic perspective on the design of equitable and efficient welfare state programs. The course starts with exploring the fundamental arguments for state intervention and the provision of social insurance, using concepts from insurance theory. Next, attention will be devoted to different welfare state interventions and schemes, including cash benefits (such as unemployment insurance, sick pay, disability insurance and pensions) and benefits in kind programs (e.g. health care). Special attention will also be devoted to policies to combat the spread of COVID-19 and to alleviate its consequences (with Short-Time Work programs). Throughout the course, programs will be assessed along the line of equity and efficiency measures, using insights from the empirical literature on the effect of welfare state interventions on individual behavior and social outcomes. Particularly in the working group sessions with small quizzes, article presentations and when writing and presenting essays, these empirical studies will be discussed.Lectures, (small) quizzes, exercises, student presentations and an essay assignment.Written examination (70%) and grade for presentations/essays/student participation/quizzes/essays (in total 30%) during tutorials.Barr, The Economics of the Welfare State, Oxford University Press, 6th edition (2020). In addition, various articles and papers are mandatory. These are all listed in the Course Manual and on canvas.Microeconomics and public economics (undergraduate level)The course manual will appear on canvas about two weeks before the start of the course.