Research

Basic Principle

Public economics studies the role of government in market economies. It examines how public revenue and expenditure policies influence economic activity. Because governments intervene extensively through taxation and transfers, public economics is central to understanding and evaluating modern economic systems.

Demographic change and globalization are driving structural transformations in developed economies. These developments pose new challenges for economic and social policy, requiring a careful balance between the strengths of markets and the need for government intervention. Research at the Chair of Public Economics focuses on the optimal design and implementation of fiscal and social institutions in times of economic change.

We study how government policies can help manage structural economic and social transformations in a sustainable way, while maintaining efficiency and equity. Our normative research concentrates on the optimal design of tax and transfer systems in dynamic settings. We also seek to integrate insights from behavioral economics—using experimental and empirical methods—with public economics theory to develop new approaches to current fiscal and social policy issues.

The positive analysis of government interventions in labor markets and welfare systems forms the second major area of research at the Chair. Current and proposed policies are evaluated with respect to their economic effects. In line with the integrative approach of the Magdeburg Faculty of Economics and Management, we combine normative and positive perspectives and translate research findings into practical, evidence-based policy advice.

Research Focus

• Labor market and social policy
• Economic determinants of subjective well-being
• Sustainable public finances
• Family policies
• Intergenerational wealth transmission and social mobility