PUBLIC ECONOMICS

The course aims to introduce the students to the main concepts of public economics and public finance.

Microeconomics and basic notions of calculus

Knowledge and understanding: Students understand the main concepts of public economics and public finance. Moreover, students understand the reasons and effects of government intervention in specific economic sectors. Applying knowledge and understanding: Students are able to: (1) apply advanced microeconomic models to formulate rigorous reasoning on the main determinants and effects of government intervention in the market, (2) understand the content of articles and documents related to public economics and finance issues. Making judgements: Students are able to critically analyze the functioning (and failures) of a market economy as well as the role of production and consumption choices, with an emphasis on government intervention. They are also able to evaluate the role of the key economic actors and the effects of policy actions in different economic scenarios. Communication skills: Students are able to (1) process data, documents and opinions on the most important public economics issues, (2) clearly present to an audience of peers their reasoning on a given public economics issue as well as state the theoretical motivations underlying their conclusions. Learning skills: Classes, lecture notes, and articles allow students to undertake with autonomy more advanced courses of economics and conduct independently a small research project (e.g. an undergraduate dissertation) on a public economics topic. Personal development skills: - Self-management; - Problem solving; - Application of numeracy skills.

Market Efficiency and the First and Second Welfare theorem; Externalities; Public Goods; Political Economy; Education; Health Care; Social Security (Pension); Optimal tax theory; Tax Incidence; Income inequality and redistribution.

H. Rosen , T. Gayer. Public Finance, Tenth (Global) Edition. McGrwaw Hill- International Edition. 2014 (Or more recent editions)

Lecture slides and class discussion

The final exam is based on the topics covered during the lectures, as well as the chapters of the textbook. The student will be evaluated on the basis of the individual scores achieved in the final exam. The final exam will be composed of four open questions and exercises (the student will choose three of them), through which the student will demonstrate his/her knowledge of theoretical concepts and how to apply them to real world cases, thus proving that he/she has acquired a good study method, critical skills and the ability to learn, requested to continue autonomously the study of the subject matter. The number of questions within each typology will be communicated to students by the instructor at the beginning of the semester. The failure to achieve at least the score of 18/30 will result in failure to pass the exam. The correct answer to all open questions, as well as the correct resolution of exercises leads to getting 30/30 with the possible awarding of cum laude.

Successfully completing the final exam