27834 - Economic and Financial Policy

Learning outcomes

This module aims to provide students with a basic knowledge of the policy instruments and the institutions governing the Italian and European economy. The module especially emphasises the econometric specification and estimation of economic policy models. More specifically, students are expected to develop the following skills:

1 – Understanding and critical knowledge of policy instruments and scenarios in Italy and Europe

2 – Ability to develop policy scenarios through econometric software

3 – Integration of skills developed in the modules of political economy, statistics and economics and econometrics in order to specify and estimate economic policy models

Course contents

Objectives and definition in Economic Policy.

Theory and modelling. Static and dynamic models.

Welfare economics.Social Optimum. Public goods and externalities. Market efficiency and failure.

Public intervention in economics. Institutions and economic policy actions.

The Budget Law. The European Union.

Unemployment and employment policies.

Inflation and price policies.

Monetary policies and exchange rates. The European Central Bank.

Financial policy.

Fiscal policy. Income and taxes. Income distribution.

Growth and public debt.

Readings/Bibliography

The recommended test in Italian is Acocella, N. (2008). Politica Economica e Strategie Aziendali. Roma: Carrocci.

Another useful textbooks is Campiglio, L. (2002). Tredici idee per ragionare di economia. Bologna: il Mulino.

 

English language reading

 

Dornbush, R., Fisher, S., Startz, R. (2004). Macroeconomics, International Edition.McGraw-Hill

Banerjee, A., Hendry, D. (1997). The Econometrics of Economic Policy. Oxford: Blackwell Publishing.

Teaching methods

Lab tutorials

 

Four tutorials in the computer lab are scheduled in this module with the objective of estimating economic policy models and create policy scenarios with Econometric Views®.

Assessment methods

Multiple choice test (not compulsory) and oral exam.

 

Students attending the labs are also invited to submit a short essay on the econometric estimation of an applied economic policy model (details to be provided during the tutorials).

Teaching tools

Lecture slides, handouts and any other teaching material will be made available on the course web-site.

Links to further information

http://www2.stat.unibo.it/mazzocchi

Office hours

See the website of Mario Mazzocchi