21810521 - FINANZA DEGLI ENTI LOCALI

The organization of the Italian system of government has undergone a profound transformation, characterized by progressive decentralization. Beginning with the creation of the regions in 1970 and continuing with the reform of Title V of the 2001 , the central government has transferred more and more responsibilities to local governments.
Therefore, knowledge of local government finance is essential for both public sector job seekers and private sector professionals involved in public administration. The study of local government finance is made even more important by the process of European integration, which has redefined the fiscal responsibilities of European Union and nation-state governments.
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Programme

The course is divided into two parts: the first economic and the second institutional. In the first phase, the economic effects of fiscal federalism are studied, including the forms, cases where advantages are obtained in terms of political representatives' control, the ability to redistribute income compared to a centralized system, and the risks that may arise in an economic system characterized by regional imbalances. In the second phase, the process of reform of the Italian tax system is studied up to the most recent reforms.

First part:
The economic theory of decentralized government
1) Models of territorial government and advantages of decentralization
a. Background of the history of political thought
b. Functional, federal, confederal systems
c. Trend towards supranational aggregations
d. Solidarity, competitive, and devolutionary federalism
e. Contract theory
f. Oates' theorem
2) Local government activities and allocation of competencies among different levels of government
a. Normative theory of spending competencies allocation;
b. Allocation of competencies and evolution of decentralized systems;
c. Formation of local governments
i. Clubs theory
ii. Tiebout model
iii. Yardstick competition models
iv. Administrative costs
3) Financing of local governments
a. Taxes and fees
i. Tax autonomy
ii. Major local taxes
iii. Public prices and fees. Revenues from compensation
c. Financing of sub-national governments through transfers and debt
d. Equalization systems and horizontal equity.

Second part:
The System of Local Government in Italy
1) The organization of local government in Italy
a. Center and periphery
b. Regions
c. Provinces
d. Municipalities
e. Other entities
2) Reforms and trends in the Italian territorial government system
3) Some issues of local government governance.

Core Documentation

G. Brosio, e S. Piperno, Governo e finanza locale. IV ed., Torino, Giappichelli, 2009, will serve as a key textbook.
In addition to prepare for this exam, the instructor will provide supplementary and updated materials available on moddle

Attendance

Attendance in the course is highly recommended.

Type of evaluation

Oral examination