Learning objectives
Knowledge of the economic aspects of public administration is now a part
of the essential professional education of political science students. This six-month-course, specifically aimed at these students, offers the theoretical institutional knowledge and tools necessary to understand the operation of the public sector, its administration and the problems connected with public intervention. Particular attention is dedicated to efficiency, and to the economic and institutional analysis of spending and taxes. The course is not of a technical nature and draws on and provides all the useful elements of economics for a full understanding of all the topics.
Prerequisites
YES
Course unit content
1. PUBLIC FINANCE
2. THEORY OF PUBLIC EXPENDITURE
3. PUBLIC INTERVENTION (EFFICIENCY & EQUITY)
4. THE TAXATION SYSTEM
Full programme
1. PUBLIC FINANCE
Public sector economics and economic system; welfare economics;
poverty, inequality and redistribution; financial equilibrium models and
public administration; public budgets and public intervention
(assessment methods and cost-benefit analysis).
2. THEORY OF PUBLIC GOODS
Externalities, mixed public needs, merit goods, public factors; public
intervention reasons and limits; public intervention, game theory and
information; policies in favour of the poorest and families and effects on poverty.
3. PUBLIC INTERVENTION (EFFICIENCY & EQUITY)
Growth of spending and crisis of the welfare state; economic analysis of the social security, care, health and education sectors and a mention of the other sectors; monopoly, oligopoly and
public enterprises; privatization, liberalization and deregulation.
4. THE TAXATION SYSTEM
Distribution principles (benefit, sacrifice, capacity); the taxation system
(efficiency and equity); erosion, avoidance, evasion and assessment;
shifting; incidence; distribution; concepts of income and wealth (capital
gains); personal income tax, company income tax, capital gains tax.
Bibliography
The study can be based on one of the following texts:
Musgrave R. and P. 2004 Public Finance, McGraw Hill
Stiglitz, J. and Rosengard J.K. 2006 Economics of the Public Sector, 4th edition, W.W. Norton (or 3rd edition)
Rosen H. 2014 Public Finance, McGraw Hill.,.
Students should also consult (as suggested):
Musgrave R 1959 The Theory of Public Finance.pdf http://desmarais-tremblay.com/Resources/
Musgrave and Peacock 1958 Classics in the Theory of Public
Musgrave R Fiscal doctrines HPE ch1 http://faculty.arts.ubc.ca/kmilligan/teaching/ECON551/Musgrave.ch1.pdf.
and the following Italian textbook
COSCIANI C. 1991 SCIENZA DELLE FINANZE, Utet, Torino.
Vagliasindi P. 2004 INTERVENTO PUBBLICO EFFICIENZA ED EQUITÀ. Giappichelli.
Information on other texts will be given during the lectures. Notes, lecture notes and other informative material on the exam will be made available during the course
Teaching methods
Teaching activities will alternate frontal oral lessons, with active learning methods. During the lessons, focused on deepening specific issues, active participation of a group and dialogue with the entire class will be privileged. At the same time each lesson will be accompanied by correlated guided practical activities (carried out also in groups).
The study of a scolar contribution and the development of a written essay, among the ones chosen by the teacher are an integral part of the student activity. Part of these work will be analysed in class during practice hours. Students are also asked to take a look, on the internet, of what suggested by the teacher, to integrate some parts of the program.
Assessment methods and criteria
Written and oral exam
The knowledge and understanding will be assessed with questions which require a short answer specifically aimed at verifying the knowledge of the concepts and principles discussed in the course.
The communication skills, the ability to apply the acquired knowledge through appropriate arguments and reflections and the autonomy of judgment will be assessed with open questions with graph, expositions and essays which require a logical and coherent articulation and integration of different notions acquired during the course.
Learning skills will be assessed on the basis of a comprehensive assessment to the different questions. The oral test may fill any gaps which eventually emerge in the written test.
Moreover, optional written and oral discussion of additional material may take place (on demand) to gain a deeper evaluation.
Other information
The lectures cover the entire course content and are supplemented by
practical exercises. Individual help is also provided in Office Hours.
