Public Economics

Recommended Prerequisites

A good knowledge of microeconomic concepts and tools is recommended

Teaching Methods

The course is structured in lectures on each topic followed by problem solving and small texts discussion sessions. Classroom games in which students make decisions and interact will also be used in order to enhance basic intuition of economic concepts.

Learning Outcomes

- Identify the key issues of Public Economics and be aware of the plurality of theoretical approaches to the study of public action in the economy
- Discuss the rationale of public action in the economy
- Analyze market failures and the public action in this domain
- Analyze the issue of social justice and the role of public policies aiming to promote equity
- Discuss environmental and social policies

- Discuss the process of collective choices and government failures
- Note the desirable characteristics of a tax system and analyze the impact of taxation on economic agents’ behavior

- Understand the importance of the state budget constraint and the issue of public finances sustainability

Develop capacity for analysis and synthesis, oral and written communication, ability to use economic data to support and develop arguments; problem solving, development of critical and self-critical sense, ability to work autonomously and in group, and capacity to apply knowledge in practice.

Work Placement(s)

No

Syllabus

I – Introduction

1.  Public action in the economy

2.  The relevance of the public sector: an international overview

II – Efficiency and public action: two different approaches.

1.  Externalities and social costs

2.  Public goods and public provision

III – Social justice

IV – Collective choice and government failures

V – The budget constraint

Assessment Methods

Final Assessment
Exam: 100.0%

Continuous Assessment
Participation in class (20%). Presence is mandatory in at least 75% of the classes. : 20.0%
The former includes two written tests: 80.0%

Bibliography

Stiglitz, J., Economics of the Public Sector, 3rd edition, W. W. Norton & Company, 1999. [BP 336.12 STI]

Cullis, J.; Jones, P., Public Finance and Public Choice: Analytical Perspectives, 3rd Edition, Oxford University Press, 2009

(Complementary readings will be provided in due time)