PUBLIC ECONOMICSAnno accademico 2019/2020 - 3° anno
SSD: SECS-P/03 - Scienza delle Finanze
Organizzazione didattica: 225 ore d'impegno totale, 165 di studio individuale, 60 di lezione frontale
1.(Knowledge and understanding) To supply the analytical knowledge needed to understand the fundaments of public intervention and its effects on the allocation and distribution of resources, with a specific focus on the Italian institutional context.
2. (Applying knowledge and understanding) To provide the students with the methodological instruments that are useful for the application of what is learned on the economics of the public sector to the professional work, in order to facilitate the access to the job market.
3. (Making judgments) To instruct the students on the utilization and interpretation of micro and macro data in order to facilitate autonomous analytical abilities.
4. (Communication skills) To favor the ability of exposition of personal opinions to experts as well as a non-specialized public.
5. (Learning skills) To guarantee an amount of learning sufficient to join a course study of a higher level, especially in the fields of public policy and administration
Modalità di svolgimento dell'insegnamento
The course will be taught mainly through lectures, although it may include tutorials, as well as seminars by invited speakers.
None. A basic knowledge of consumer theory and theory of the firm is useful for a better and faster learning
Strongly suggested but not mandatory
Contenuti del corso
Public intervention, normative and positive analysis. State functions. * Fundaments of welfare economics, market failure and reasons for public intervention. *Political Economy. Cost-benefit analysis. Income redistribution. *Tax incidence, taxation and efficiency; income taxation and its effects; corporate taxes; consumption taxes. Analysis of public expenditure. *Welfare and pension system in Italy. *The public budget. * Deficit, fiscal policy and European governance. *Fiscal federalism. *Local public finance.
Testi di riferimento
H. S. Rosen, T. Gayer. Public Finance. 10th Global Edition
Programmazione del corso
|1||Introduction to the course. Tools of positive analysis||Chapters 1-2|
|2||Tools of normative analysis||Chapter 3|
|3||Fundaments of welfare economics. Efficiency conditions||Chapter 3|
|4||Market failures||Chapter 4|
|5||Public goods -positive analysis||Chapter 4|
|6||Public goods - normative analysis||Chapter 4|
|7||Political economy - Direct democracy||Chapter 6|
|8||Political economy - Representative democracy||Chapter 6|
|9||Political economy - Government growth and other issues||Chapter 6|
|10||Income redistribution: conceptual issues||Chapter 12|
|11||Social welfare functions||Chapter 12|
|12||Cost-benefit analysis||Chapter 8|
|13||Proportional and progressive taxation - deductions and tax credits||Chapters 14 - 17|
|14||Tax incidence in partial equilibrium - Taxation in a monopoly||Chapter 14|
|15||Taxation and efficiency – eccess burden||Chapter 15|
|16||Trade-off between equity and efficiency||Chapter 16|
|17||Classification of public revenues||Chapter 18|
|18||Personal taxation and behavior||Chapter 18|
|19||The Corporation tax||Chapter 19|
|20||Taxes on consumption||Chapter 21|
|21||Deficit finance||Chapter 20|
|22||Public expenditures, direct provision and public sector efficiency||Handouts|
|23||Health care market||Chapter 9 - pp. 176-193|
|24||Health expenditures||Chapter 10 - pp.201-206|
|25||Social security and programs for the poor||Chapter 11 - pp.222-243|
|26||Unemployment policies||Chapter 13 - pp.273-280; 289-292|
|27||European governance and fiscal policies||Handouts|
|28||Fiscal federalism||Chapter 22|
|29||Second generation federalism||Chapter 22|
|30||Local public finance||Chapter 22|
Modalità di verifica dell'apprendimento
Regular examination consists of a written test: students are required to answer 4 open-ended questions.
At the end of the first module, regularly attending students can sit a facultative written test on the corresponding part of the program.
Esempi di domande e/o esercizi frequenti
1. Efficiency condition with public goods
2. Median voter theorem and applications to large elections
3. Describe the criteria for project evaluation and three methods of cost-benefit analysis
4. describe and discuss the Oates' decentralization theorem
5. Discuss the problem of the burden of public debt
6. Tax incidence in perfect competition
7. Tax incidence in monopoly
8. Describe the effects of deductions and tax credits on progressiveness
9. Effects of personal taxation on labor supply
10. Discuss and compare the utilitarian and the Maximin Social welfare functions