Learning objectives

The course aims to provide students with rigorous economic tools for the modern analysis of public policies. We will review the justifications for the economic role of the state, focusing on the role of public expenditure, taxation and regulatory policies. We will supplement the analysis of theoretical models with evidence from Italian public policies. We will focus on the underlying motivations behind public interventions and on the effect of public policies in terms of efficiency and equity. At completion of the course, students should be able to understand and evaluate critically the justifications for the public intervention in the economy, to analyse and assess rigorously public policies on the basis of economic theory, and to master the economic analysis of the main Italian taxation tools.

Prerequisites and basic notions

No prior knowledge is compulsorily required. Basic concepts of Macroeconomics and Microeconomics will be resumed during the course. On these subjects students are invited to follow the relevant bibliographic indications provided by the associated courses that are organized with the course of studies.

Program

The overall course programme (for the 9 ects) covers three parts.
Part I, Intorduction and public expenditure:
- Introduction to main tools for the analysis of public finance.
- Analysis of the public spending components related to market failures (public goods, externalities, social expenditure).
- Investigation of the main issues concerning the economic analysis of social security systems, with particular attention to the problems related to the reform of the Italian pension system.
Part II Economics of taxation:
- Introduction to the economic analysis of taxes.
- Distribution of income, wealth and poverty
- Theories of income (re)distribution
- Equity and efficiency in commodity and income taxation, and the effects of taxation on individual behaviour.
- An introduction to the Italian tax system and the economic analysis of Italian personal income tax.
Part III The economic analysis of the Italian tax system
- Public revenue: economic classifications, compliance, horizontal equity and vertical equity.
- The Italian tax system: institutional and economic characteristics of the main taxes and effects of recent reforms. Income Tax for Individuals (IRPEF), corporate income tax (IRES), taxation of financial activities.
- Indirect taxes. The tax revenues at regional level, for provinces and municipalities
The detailed outline of the course will be provided during the teaching period. Teaching material, exercises, and detailed outline will be made available on the University e-learning website of the course.
For the textbooks please refere to the most updated versions.

Bibliography

Didactic methods

The teaching methods will cover lectures and exercise classes. Tutoring activities will be develloped in parallel with lectures.
Students will be able to access in advance the material related to each lecture in order to stimulate the discussion in class. During the lectures in class attention will be devoted to the discussion of the topics with the students, the analysis of examples and case studies and the solution of exercises.

Learning assessment procedures

The assessment of learning outcomes is carried out through a final written exam on the entire course program which includes multiple choice questions and exercises evaluating the ability to apply technical knowledge, and open questions that focus on assessing the development of critical analysis and the ability to connect between the topics analyzed in the course.
Students will also have the opportunity to complete theit evaluation through a mid term exam on the first part of the course and a final exam on the second part of the course that will take place in the first exam date scheduled for the course in the exam session for the semester where the course is delivered. Both exams will receive an equal weight in the evaluation.

Evaluation criteria

The exam questions will verify the ability to apply the technical knowledge developed during the course, the development of critical analysis and the ability to relate between them the topics analyzed in the course.
A specimen the exam will be provided on the e-learning website of the course.

Criteria for the composition of the final grade

The overall grade will result from the sum of the evaluations of the questions presented in the written test. The weight of the various questions will be indicated in the exam.
For those who take the partial exams, each of the two exams will receive equal weight in determining the overall grade.

Exam language

Italiana

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