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Welcome to the Institute of Public Economics

Public Economics studies the interaction between governments and markets. In recent years societies have been experiencing a number of challenges such as the Covid pandemic, high energy prices due to the war in Ukraine, Climate Change, or more polarized politics while there are also potential opportunities like the introduction of Artificial Intelligence. Should the government intervene in response to such challenges and if so how? These are the classical questions in Public Economics and economic policy often draws on the results in Public Economics.

Specifically, current research at the Institute of Public Economics covers questions such as

  • How can Public Policy respond to Artificial Intelligence?
  • Should we have a robot tax or universal basic income?
  • Can we design taxes and subsidies to foster innovation for sustainable and inclusive growth?
  • How can we make fair decisions in pluralistic and increasingly polarized societies?
  • How can we design political institutions to deliver the highest level of well-being to society?
  • How do people's desire for status impact the economy's efficiency, income inequality and the design of an optimal tax system? 
  • Should we subsidize charitable donations (more), and how does the optimal tax treatment of charitable giving interact with optimal income taxation?

Research at the Institute of Public Economics therefore lies at the intersections of Public Economics with the Economics of Innovation and Economic Growth as well as with Social Choice and Political Economy. Our research also relates to the scientific heritage of Joseph A. Schumpeter who was active as a Professor at University of Graz between 1911 and 1918. His work is celebrated via the annual Schumpeter lectures and the Graz Schumpeter Centre.

Further Details about our research and publications can be found under the link „Research“. 

Apart from doing research the Institute's faculty members teach Public Economics and Economics of Institutions and related subjects at undergraduate and graduate levels to students in Economics, Business Economics, Legal Studies, and Environmental System Sciences. You are encouraged to find out more about us and our activities by following the links on this web page.


Universitaetsstr. 15/E4
8010 Graz

Phone:+43 316 380 - 3463

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