Public Economics Workshop
A.Y. 2020/2021
Learning objectives
The aim of this workshop is to give students the opportunity to actively learn and discuss key topics in public economics and public policy within a seminar environment. The topic of the 2019-2020 edition of the workshop is Macroeconomic and fiscal policies in the European Union and in the European Monetary Union.
Expected learning outcomes
Knowledge and understanding: By the end of the workshop, students will be equipped with analytical tools and knowledge for improving their understanding of real-world public economic policies. In the 2019-2020 edition, students will learn normative and positive issues regarding budget deficit and public debts (e.g., debt sustainability, tax smoothing, fiscal dominance, deficit bias); whether or not fiscal rules and fiscal councils are substitutable or complementary tools for enforcing fiscal policy discipline; how fiscal rules work in the EU and whether or not they should be reformed.
Making judgements: By the end of the workshop, students should know how to use economic analysis to make informed judgements about public economic policies.
Communication skills: Seminar presentations will enable students both to test their understanding and ability to communicate knowledge of the relevant topics, and to discuss in an academic environment real-world public economic issues. Essay writing will enable students to test their ability to communicate the theories and ideas presented in seminars and their policy implications. Students are not expected to develop original results, but to analyse and provide a balanced view of the possible policy options and recommendations.
Learning skills: Lectures, seminar presentations and essay writing will enable students to better their critical thinking on public economics, to help developing creative thinking on real-world public economic policies, to communicate knowledge to others, to collaborate in teams.
Making judgements: By the end of the workshop, students should know how to use economic analysis to make informed judgements about public economic policies.
Communication skills: Seminar presentations will enable students both to test their understanding and ability to communicate knowledge of the relevant topics, and to discuss in an academic environment real-world public economic issues. Essay writing will enable students to test their ability to communicate the theories and ideas presented in seminars and their policy implications. Students are not expected to develop original results, but to analyse and provide a balanced view of the possible policy options and recommendations.
Learning skills: Lectures, seminar presentations and essay writing will enable students to better their critical thinking on public economics, to help developing creative thinking on real-world public economic policies, to communicate knowledge to others, to collaborate in teams.
Lesson period: Third trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
Third trimester
Meetings will be held on MT (or Zoom) in synchronous mode.
Course syllabus
The 2020-2021 edition of the Public Economics Workshop will focus on the topic "Macroeconomic and fiscal policies in the EU and in the EMU". The meetings will be organised as follows. The first 4 meetings will introduce some basic concepts that will be useful for the seminar discussion and for a better understanding of student presentations in the second part of the workshop. During these introductory meetings, the teacher will mainly present materials (slides and specific references will be provided). However, active participation by the class will be encouraged. In particular, at the start of each new meeting, we shall devote some time to discuss and clarify the basic concepts introduced in the previous meeting in a Questions & Answers type of mode.
The topics that will be covered in the first four meetings are as follows: Basic concepts: budget balance: deficit and surplus. Alternative definitions of budget balance (official nominal budget balance; inflation-adjusted budget balance; cyclically-adjusted budget balance; structural budget balance). Automatic stabilisers. How to finance a budget deficit? Public debt, seigniorage and inflation. The Dynamic Government Budget Constraint. Determinants of the Debt/GDP ratio over time; debt sustainability: how to «stabilize» the Debt/GDP ratio. Fiscal rules for benevolent governments: tax smoothing and the "golden rule" of government finance; fiscal rules as a disciplining device for non-benevolent governments: reducing the deficit bias; the role of fiscal councils.
The EU and EMU fiscal and monetary policy frameworks.
The next four meetings will be devoted to student presentation and general seminar discussion. Topics will be announced at the start of the course, depending on student participation. Examples of seminar topics are as follows: Do we need fiscal policy rules?; Fiscal rules in the "business as usual" EMU: proposals of reforms; Fiscal councils and fiscal rules: Substitutes or complements? Coordinating monetary and fiscal policy in the EMU in times of crisis: any role for "helicopter money"? Risk-sharing in the EMU: Eurobonds, coronabonds and the like; Does the euro area need a fiscal union?
The topics that will be covered in the first four meetings are as follows: Basic concepts: budget balance: deficit and surplus. Alternative definitions of budget balance (official nominal budget balance; inflation-adjusted budget balance; cyclically-adjusted budget balance; structural budget balance). Automatic stabilisers. How to finance a budget deficit? Public debt, seigniorage and inflation. The Dynamic Government Budget Constraint. Determinants of the Debt/GDP ratio over time; debt sustainability: how to «stabilize» the Debt/GDP ratio. Fiscal rules for benevolent governments: tax smoothing and the "golden rule" of government finance; fiscal rules as a disciplining device for non-benevolent governments: reducing the deficit bias; the role of fiscal councils.
The EU and EMU fiscal and monetary policy frameworks.
The next four meetings will be devoted to student presentation and general seminar discussion. Topics will be announced at the start of the course, depending on student participation. Examples of seminar topics are as follows: Do we need fiscal policy rules?; Fiscal rules in the "business as usual" EMU: proposals of reforms; Fiscal councils and fiscal rules: Substitutes or complements? Coordinating monetary and fiscal policy in the EMU in times of crisis: any role for "helicopter money"? Risk-sharing in the EMU: Eurobonds, coronabonds and the like; Does the euro area need a fiscal union?
Prerequisites for admission
Students are assumed to be familiar with basic knowledge of microeconomics and macroeconomics. Knowledge of the contents of the Public Economics or Scienza delle Finanze courses at the UG level is not compulsory, but it is recommended.
Teaching methods
Lectures, student presentations, seminar discussion, essay writings.
Teaching Resources
A detailed reading list will be released at the start of the workshop (third term 2020-2021). Teaching materials (e.g. slides of meetings, links to readings, presentations) will be uploaded on the ARIEL Public Economics Workshop website. The reading list will include policy papers or short papers posted on specialised websites (such as voxeu.org, bruegel.org, ifo.de). A selection of readings is as follows:
-Buti, M, Giudice, G. and Leandro, J. (eds), (2020). Strengthening the Institutional Architecture of the Economic and Monetary Union, a VoxEU.org eBook, CEPR Press.
-De Grauwe, P. and Diessner, S., (2020). "What price to pay for monetary financing of budget deficits in the euro area", voxeu.org.
-Eyraud, L., Duarte Lledo, V., Dudine, P. and Peralta Alva, A. (2018). "How to select fiscal rules, A primer", How-to Notes, IMF.
-European Fiscal Board (2020). 2019 Workshop on Independent fiscal institutions in the EU fiscal framework.
- Pisani-Ferry, J. and Zettelmeyer, J. (eds). (2019). "Risk Sharing Plus Market Discipline: A New Paradigm for Euro Area Reform? A Debate", voxeu.org, CEPR.
-Stiglitz, J.E. (ed). (2019). "Rewriting the rules of the European economy", FEPS
-Buti, M, Giudice, G. and Leandro, J. (eds), (2020). Strengthening the Institutional Architecture of the Economic and Monetary Union, a VoxEU.org eBook, CEPR Press.
-De Grauwe, P. and Diessner, S., (2020). "What price to pay for monetary financing of budget deficits in the euro area", voxeu.org.
-Eyraud, L., Duarte Lledo, V., Dudine, P. and Peralta Alva, A. (2018). "How to select fiscal rules, A primer", How-to Notes, IMF.
-European Fiscal Board (2020). 2019 Workshop on Independent fiscal institutions in the EU fiscal framework.
- Pisani-Ferry, J. and Zettelmeyer, J. (eds). (2019). "Risk Sharing Plus Market Discipline: A New Paradigm for Euro Area Reform? A Debate", voxeu.org, CEPR.
-Stiglitz, J.E. (ed). (2019). "Rewriting the rules of the European economy", FEPS
Assessment methods and Criteria
Course assessment will be based on the following:
1. Student oral presentation (20 to 30 minutes) backed up by slides: 40% of the final mark.
2. Short written essay (max 10 pages, max 30 lines per page, e.g. about double spaced pages) on one of the topics of the seminarial meetings: 50% of final mark. The written essay should be based on at least two of the papers discussed in the meetings. Students may decide, if they wish to do so, to write their essay on a different topic from the one they presented. The essay must be submitted to [email protected] by 2nd July 2021.
3. Active participation in the workshop discussions: 10% of the final mark.
1. Student oral presentation (20 to 30 minutes) backed up by slides: 40% of the final mark.
2. Short written essay (max 10 pages, max 30 lines per page, e.g. about double spaced pages) on one of the topics of the seminarial meetings: 50% of final mark. The written essay should be based on at least two of the papers discussed in the meetings. Students may decide, if they wish to do so, to write their essay on a different topic from the one they presented. The essay must be submitted to [email protected] by 2nd July 2021.
3. Active participation in the workshop discussions: 10% of the final mark.
Professor(s)
Reception:
Office and feedback hours. Next meetings: Fri 4/7/25 at 14:30-17:30 hh; Mon 7/7/25 at 8:30-10:00 hh and 16:00-17:30 hh; Fri 18/7/25 at 8:30-11:30 hh.
Online on MT.