FINANCE SCIENCE (PUBLIC SECTOR AND MARKETS)
Learning outcomes of the course unit
The course describes the role, the functions and the mode of action of the public sector in a free economy. The problems on the analysis of the main activities where the public administration replaces or supplements the free economy are different. Also, the course deals with the relationships between the public and private sectors for the achievement of collective utility, for which different solutions can be considered in relation to their efficiency and equity of distribution, including those involving the integration of private operators (private companies, non-governmental organizations, etc.) with direct interventions or forms of regulation by the government.
The theoretical arguments are treated in summary, but they are mainly classified in the institutional context and supported by ample empirical evidence, to have greater adherence to real 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.
Assessment methods and criteria
Written examination with open questions