PUBLIC ECONOMICS

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

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

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.

H. S. Rosen, T. Gayer. Public Finance. 10th Global Edition

Lecture slides will be uploaded on Studium on weekly basis

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.

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