Analyzes the role of the state in the economy, including its manifestation as a welfare state and the interrelations between the state and the market. It presents the theory of social choice and voting, bureaucracy and government output, rent-seeking and democracy. Then the course deals with specific governmental institutions, expenditure programs and taxes from a comparative international perspective, including health care, education, social insurance, anti-poverty programs and fiscal federalism. Finally, examines the model of a civil society. (Cross listed International Economics/International Development)