FINANCE SCIENCE (PUBLIC SECTOR AND MARKETS)
Learning outcomes of the course unit
The intention of the course is to illustrate the role, functions and modes of action of the public sector in a market economy. Various issues are dealt with through analysis of the main activities in which public administration replaces or integrates the market. The course also discusses the topic of the relationships between public and private for achieving collective utility objectives, for which, with regard to efficiency and distributive equity, various solutions can be considered, also including those that require the integration of the activities of private operators (enterprises, non-governmental bodies, etc.) with direct intervention or forms of regulation by public administration authorities.
The topics are discussed briefly on the theoretical level, but are mainly described in the institutional context and supported by ample empirical evidence, in order to obtain closer adherence to actual situations and in particular to the Italian case.
Course contents summary
I - The public sector in Italy.
Role and function of the public sector.
Organisations and structure of the public sector in Italy.
The State budget.
II - Theory of public finance.
Public goods and theorems of welfare economics.
Financing of public goods, revelation of preferences and free riding behaviour.
Collective decisions in systems of representative democracy.
Market failures and State failures
III - The supply of public goods and services.
Bureaucracy, efficiency and increase in public spending.
Public supply contracts.
Direct public intervention.
Prices in public utility services.
Regulation and competition policies
IV - Taxes
Classification and general characteristics of taxes.
Criteria for fiscal burden sharing and progressivity.
Main types of tax
P. Bosi (by), Corso di scienza delle finanze, il Mulino, Bologna, (ultima edizione).
Lecture transparencies on line.