30637 - PUBLIC FINANCE
Department of Social and Political Sciences
Course taught in English
Go to class group/s: 31
Course Director:
ALESSANDRA CASARICO
ALESSANDRA CASARICO
Mission & Content Summary
MISSION
Government intervention in modern economies is pervasive and substantial. As a crude measure, government revenue and expenditure in OECD countries averages between 46% and 40% of GDP. The COVID-19 crisis has increased the role of government in market economies. Taxation, climate change externalities, pensions, health care, public debt, inequality and redistribution are all issues at the heart of the debate in virtually all contemporary democratic countries, representing key concerns for many of their citizens and often driving the political agenda. Understanding when, how and with what consequences government should intervene is crucial to understanding how modern economies work and the relationship between economics, public policy and law in order to identify effective reforms.
The course aims to provide students with the intellectual framework necessary to seek sensible answers to these difficult questions. It builds on robust theoretical and empirical arguments, together with sound institutional analysis, to achieve an in-depth understanding of how government intervention shapes modern societies and how economic principles intersect with public policy and legal frameworks.
CONTENT SUMMARY
Introduction to public economics and public finance: facts about government intervention
Theoretical tools for public finance
Externalities
Public goods
Natural monopoly
Empirical tools for public finance
Social insurance
Health
Pensions
Personal income tax
Corporate income tax
Consumption tax
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
Acquire a basic technical language in economics (e.g., utility functions, profit maximization, competition, welfare evaluation).
Analyze some economic data and learn how to read and interpret data, graphs and figures.
Identify the reasons and tools through which governments intervene in market economies and their impact on individuals and firms.
Illustrate different policies on the revenue and expenditure side of the budget.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
Analyse the building blocks of government intervention in the economy
Interpret economic data and economic phenomena involving a role for government
Assess alternative policies or reform proposals
Compare different policies and how they affect individuals and firms
Discuss current policy issues and formulate policy assessments, individually or in teams
Teaching methods
- Lectures
- Practical Exercises
- Collaborative Works / Assignments
DETAILS
At the end of each topic, there will be practical sessions in class with problems, and open and multiple choice questions to deepen the theoretical understanding of the topics.
Group presentations and discussion on a list of policy questions prepared by the instructors.
Assessment methods
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ATTENDING STUDENTS
Two in-class quizzes are scheduled for students who have attended at least 70% of the lectures at the time each quiz is held.
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The first quiz will take place in the first part of the course (before the midterm exam).
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The second quiz will take place in the second part of the course (after the midterm exam).
Group work
NOT ATTENDING STUDENTS
The evaluation will entirely be based on the written exam/s.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
J. Gruber: Public Finance and Public Policy, Worth Publishers, Last edition
Slides made available on Blackboard.
Handouts with questions and solutions.
Last change 19/11/2025 14:53