FINANZA PUBBLICA

Tools of normative analysis: Welfare Economics and its fundamental theorems. The rationale for public intervention in the economy: market failures (public goods, externalities, natural monopoly, information asymmetries). Income redistribution and its theories. The expenditure for healthcare. Introduction to the theory of taxation. Taxation and income distribution: tax incidence in partial equilibrium. Taxation and efficiency: excess of tax burden. Personal taxes and individual behaviours. Introduction to the Italian Tax system. Personal Income Tax. The Theory of Fiscal Federalism: the rational for decentralizing. Distribution of functions among different levels of government. The financing structure of decentralized governments. Financial equalization policies. The system of local governments in Italy: the 2001 Constitutional reform and the Law 42/2009. The financing structure of Regions and municipalities.

[1] Harvey S. Rosen and Ted Gayer, Scienza delle Finanze, 4th edition, McGraw-Hill, 2014. ch. 3, ch. 4 (with the exception of the table 4.1 and appendix 4.1), ch. 5 (with the exception of sub-paragraphs 5.4.3, 5.4.4, 5.4.5, 5.4.6 and 5.4.7 and tables 5.1 and 5.2), ch. 7, ch. 10 (with the excepton of table 10.1), ch. 14 (up to p. 251), ch. 15 (up to p. 269), ch. 17 (up to p. 309), ch.18 (with the exception of table 18.1), ch. 21 and ch. 22.