28354 - Principles of Public Economics

Learning outcomes

Student is expected to get frameworks of economics within the public sector. In particular, the student is expected to understand: - the role of government in mixed economies - economic efficiency and Pareto efficient allocations - market and public failures - results of the social choice theory - role of the government in the redistribution of income - financing of government interventions through the tax system.

Course contents

The course starts by providing a comprehensive treatment of the perfectly competitive markets. Then we consider circumstances (externalities, public goods, incomplete and asymmetric information, natural monopoly) which make the competitive market to underperform. We will then analyze a range of private and public institutions adopted as remedies to those circumstances (standards, public provisions, taxes, subsidies, non-profit organizations, copyright rules). We develop this overall analysis using examples and case-studies from the markets for art and culture.

Readings/Bibliography

Mankiw, G., Principles of Economics, Dryden Press, any edition (MAN)

Gruber J., Public Finance and Public Policy, Worth Publishers, 4th ed. (GRU)

Additional material provided in class.

Teaching methods

Traditional lectures led by the course lecturer.

Assessment methods

The final assessment is done with a written exam. You will have 90 minutes to complete it. The written exam comprises open questions, true/false questions and multiple-choice question sets. The exam is closed books. Only a dictionary is allowed. We will do a simulation in class.

The content and structure of exam questions is intended to assess familiarity with the material covered in the course lectures, and to assess understanding of the theoretical content of the course. The nature of exam questions will closely follow examples covered during the course and discussed in lectures/tutorials.

The grading system is on a 0-30 range. The maximum possible score is 30 cum laude, in case all answers are correct, complete and formally rigorous. If this is not the case, the following grid applies:

• 30 cum laude: Excellent preparation and analytical skills, expressed in a correct and precise language; ability to analyze critically and to link different concepts, mastery of specific terminology
• 27-30: Very good preparation and analytical skills, expressed in a correct and precise language; very good ability to analyze critically and to link different concepts.
• 24-27: Good preparation and analytical skills, expressed in a formally correct language. Some minor imprecision in the exposition and use of technical concepts
• 21-24: Satisfactory preparation and analytical skills, expressed in a formally correct language. Some imprecisions in the exposition and use of technical concepts
• 18-21: Sufficient preparation and analytical skills, expressed in a formally correct language. Many imprecisions in the exposition and use of technical concepts
• <18: fail

Teaching tools

We will use Unibo e-learning platform (VIRTUALE.UNIBO.IT) for remote downloading of teaching materials and uploading of assigned teamworks.

Details on how to access the remote learning platform will be provided at the beginning of the course.

Links to further information

https://sites.google.com/view/danielefabbri/home

Office hours

See the website of Daniele Fabbri