20101018 - PUBLIC FINANCE

The knowledge of the economic reasons justifying public intervention in the economy, of the forms and consequences of the different policy instruments with special regards to taxation, public expenditure and market regulation. More specifically, at the end of the course, students should
a) know the main analytical categories developed by Welfare Economics; the main types of public intervention that are available, their expected benefits and the possible costs;
b) acquire a more in-depth understanding of tax design, of the structure of the different taxes and of the main critical issues characterizing the Italian tax system;
c) be aware of the interaction between law and economics whether they have to do with the effect of legal rules on the behavior of economic actors or with the contribution of economic analysis to the design of legal rules;
d) develop a critical ability to evaluate economic phenomena.

Canali

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Programme

OBJECT OF THE COURSE: the economic analysis of public intervention in the allocation and distribution of resources with a focus on the tax-transfer activities of the State.

PROGRAM - The course is divided into two modules:
I) Public intervention in the economic system
1. Foundations of Welfare Economics
2. Market failures
3. Non-market failures
4. The public budget

II) The tax system
1. The functions of a tax system
2. Equity and efficiency of a tax system
3. Tax shifthing and tax incidence
4. Composition of a tax system. Structure and effects of: personal income taxation; business taxation; capital income taxation; property taxation and consumption taxation
5. The vertical distribution of fiscal powers



Core Documentation

B. Bises, Lezioni di Scienza delle finanze, volume 1 e 2, 2019

Volume 1
Chapters
3 (no Appendix)
4 (no Appendix)
5, par. 1, 2, 4, 5 e 6 (no figure 5.5)
6 (no figures 6.5, 6.7. and par.6.2.3 and figures 6.11 e 6.12)
7, par. 1, 2 (no , 2.2.2), 5, 6, 7
10

Volume 2
Chapters
1, par. 1.1
2 until par. 4.2.1 included (no par. 2.6.3)
3
4. par. 1, 3, 4, 5 (5.1, 5.2, 5,5)
5
6 (no graphs 6.5, 6.6)
7 (only formulas related to tax credit)
8
9 (no 2.2.2, 2.2.3)
10
11


Type of delivery of the course

Lessons

Type of evaluation

Written exam and short oral exam (compulsory for those who have a grade between 15 and 17 in the written examination; optional for everybody else.

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Programme

Part I - Public Economics
Introduction
Public intervention in the economic system
Foundations of welfare economics
The two fundamental theorems of welfare economics
Normative theories of social choices
Market failures and public intervention
Macroeconomic policies, budget deficit, and public debt
Public finances in Italy
The EU budget

Part II - The Tax System
Tax system: function and requirements
Equity and efficiency
Tax shifting and incidence
Personal income tax
Taxation on business income and capital companies
Taxation on income from financial activities
Taxes based on wealth
Consumption taxes

Core Documentation

Bises, Bruno Lezioni di Scienza delle Finanze, Parte I “L’intervento pubblico nel sistema economico”, Giappichelli, IV Edizione, 2024.
Bises, Bruno Lezioni di Scienza delle Finanze, Parte II “Il sistema tributario”, Giappichelli, IV Edizione, 2023.


Attendance

Attendance at lectures is expected according to university rules

Type of evaluation

The assessment methods are designed to check the achievement of educational objectives, especially understanding the basic concepts of Public Finance (Public Economics and Public Finance) and the related analytical tools. There are two assessment methods: 1) Assessment during ordinary and special examination sessions 2) Assessment throughout the course 1) Assessment during ordinary and special examination sessions. The assessment consists of: a) A mandatory written exam covering the entire program; - Duration: 1 hour and 30 minutes; - Structure: multiple-choice questions and open-ended questions; - Registration: students must strictly register for the exam on GOMP. Registrations close 3 days before the exam, and no one can be admitted after this deadline; - It is possible to withdraw from the written test during the exam; b) An oral exam covering the entire program: - Optional if the written test score is at least 18/30; if successful, the final grade cannot be rejected; - Mandatory if the written test score is insufficient with admission to the oral exam (score between 15 and 17) and it is intended to complete the exam; if successful, the final grade cannot be rejected. Anyone intending to take the oral exam must notify the instructor via email within 24 hours of the publication of the written test results. Since the written test is the central means of assessing skills, the oral is limited to a maximum of two questions. For students scoring between 15 and 17 on the written test, the oral aims to achieve a passing score (18/30). For other students, the grade variation is limited (+2 or -2 points) compared to the final grade obtained in the written exam. Those who wish to reject the outcome of the written test must explicitly email their refusal within 24 hours of the publication of the written test results. 2) Assessment throughout the course. The assessment consists of a mid-term written exam and a final written exam, held during special dates in April and at the end of May, respectively (and, possibly, an oral exam in June). More details are available on Moodle: Presentation 0.

teacher profile | teaching materials

Programme

The course is taught in Italian. Therefore, please refer to the program in the Italian section.

Core Documentation

Although the course is taught in Italian and the assessment will be in Italian, foreign students can ask to Professor Sciala' some reference in English.

Type of evaluation

The assessment is in Italian. Therefore, please refer to the assessment described in the Italian section