12442 - Economics of the Public Sector

Course contents

FIRST HALF:  Rationale for and types of public sector intervention

• Economic rationale for public sector intervention. Efficiency and welfare theorems. Efficiency and equity. Market failures: public goods, externalities, asymmetric information.
• Public choice.
• Public sector in Italy.

SECOND HALF: revenues and expenditures

• Principles of taxation and tax incidence.
• Expenditure programs: pensions, health, social insurance, education.

Readings/Bibliography

Stiglitz, J., Economia del settore pubblico, Hoepli, Milano, seconda edizione, 2003, vol. 1, capp. 1-11.

Stiglitz, J., Economia del settore pubblico, Hoepli, Milano, seconda edizione, 2003, vol. 2, capp. 1, 4-7 (additional material for the chapter in Bosi), 11.

Bosi, P. (a cura di), Corso di scienza delle finanze, Il Mulino, sesta edizione, 2012, cap. VIII.

Teaching methods

Theoretical and practical lectures.

Assessment methods

There is a written examination. This consists of a section with multiple choice questions (with answers usually requiring a sentence or two of justification) and three sections with open questions. Each of these contains two or three questions, typically asking for a definition, and a more detailed discussion, of crucial issues relating to the topic. The candidate is not required to solve analytical exercises. However, she must show an understanding of the analytical concepts developed in the lectures and reported in the course slides. Marks are given out of a total of thirty and the final mark is given by the sum of the marks of each section, which are reported in the examination paper. Candidates are not permitted to bring textbooks, notes, IT devices or any other support material in to the exam.

First year students who attend lectures are offered the chance to take two intermediate examinations during term time. These are not compulsory, they are offered only to those who attend lectures, and they are based on the material covered in the respective parts of the course. Students who would like to attend the partial examinations should register with the lecturer during one of the four lectures prior to the exam. Only those who obtain a sufficiently high mark can sit the second intermediate examination. The final mark is computed as an average of the marks for the two intermediate exams.

Teaching tools

Slides and any other material used during the course will be available on AMS Campus.

Office hours

See the website of Renata Bottazzi