04722 - Public Economics

Learning outcomes

The aim of this course is to provide the fundamental elements of the economic theory required for the understanding of public intervention in the economy (taxation, public spending, regulation). Moreover thesegeneral elements are applied toanalyse the institutional arrangements in Italy in the field of fiscal policies.

Course contents

1. Introduction - An overview on public finance in Italy – The public debt: Artoni chapter 1 (only box 1.1); chapter 16 (only pp. 529-530 + par. 5 (only p. 541-545))

2. Introduction to welfare economics: Artoni chapter 2

3. Social welfare function: Artoni chapter 3 (excluding par. 1.4 and in par. 2 analytical treatment on “elasticity of substitution”)

4. Public goods: Artoni chapter 13, par. 3; chapter 5 only par. 1, 2 e 3 (in par. 1.1 only graphical analysis)

5. Externalities: Artoni chapter 13, par. 2

6. Asymmetric information: Artoni chapter 11, p. 329-347

7. Natural monolopy: Artoni chapter 14 (excluding analytical proof of peak-load pricing (p. 480-483) and par. 6)

8. Pension system: Artoni chapter 12 (excluding Appendix)

9. Heath care: Artoni chapter 11 (excluding Appendix A1 and A2)

10. Taxation-general profiles: Artoni chapter 1, p. 19-21, p. 26-28 and p. 31-40; chapter 4

11. The economic effects of taxation: Artoni chapter 9, only par. 1.1, 1.3, 2.2, 3.1.

12. Personal income tax: Artoni chapter 5

13. Corporate income tax: Artoni chapter 6 (excluding p. 173-181)

14. Taxation on capital income: Artoni chapter 7 (excluding Appendix 1 and Appendix 2)

15. Indirect taxation: Artoni chapter 8

Readings/Bibliography

· R. Artoni, Lezioni di Scienza delle finanze, Il Mulino, 2003, IV ed.

· Updating notes of the book by R. Artoni, Lezioni di Scienza delle finanze (on sale at Nautilus bookshop).

· G. Casalone and L. Micheletto (eds) Scienza delle finanze – Esercizi, Egea, 2012,VII ed.

Teaching methods

Lectures and tutorials

Assessment methods

Final assessment involves a written exam including normally 6 questions. Available time: 1,5 hours. No oral exam is provided. An intermediate exam is provided during the lecture semester (October 29 2012, time 2.00pm) covering the first part of the course programme (topics from 1) to 8) inclusive). The exam should be completed not later then the official exam session of January-February 2013.

Links to further information

http://www2.dse.unibo.it/zanardi/index.htm

Office hours

See the website of Alberto Zanardi