Economic Policy
A.Y. 2022/2023
Learning objectives
The aim of the first module (20 hours, 3 credits, EMA students) is to outline the main set of theories used by macroeconomists to understand the effects of fiscal policy, with a focus on the economic effects of the public debt. This knowledge will help students to understand and evaluate real-world government fiscal policies. The second part of the course (40 hours, 6 credits, EMA and SIE students) covers a selection of political economy topics, adopting both a micro- and macro-economic perspective. The module starts with a discussion of the role of economic policy, the main reasons for public intervention in the economy and the methods to evaluate the results and outcomes of such interventions. The discussion will then focus on the concepts of income and wealth inequality, social mobility and poverty, analysing both empirical evidence and theoretical contributions and assessing the role of government redistributive policies. The module will then concentrate on two key areas of public policy aimed at fostering economic growth and reducing social equality: education policy and labour market policies. For both areas, the students will learn about issues of measurement and key elements of the theoretical framework, and will subsequently concentrate on studying different types of government intervention and the evidence on their effectiveness.
Expected learning outcomes
Applying knowledge and understanding. By the end of the first module students will be equipped with analytical tools for understanding what macroeconomists mean for public debt sustainability, why it matters, the pros and cons of introducing fiscal policy rules and budgetary institutions, how to interpret and evaluate fiscal policy rules in the Eurozone. By the end of the second module students will acquire theoretical knowledge on a wide range of political economy topics and understand the impact of State intervention in different economic areas. Specifically, the information acquired will allow students to understand the functioning of redistributive policies, education policies and labour market interventions.
Making judgements: By the end of the first module, students will be able to use economic analysis to make informed judgements on whether it is desirable to revise the current fiscal policy rules of the Eurozone and to express their views on the proposals for revision. By the end of the second module, students will be able to critically analyse the reasons and the consequences of government intervention in specific economic fields and to compare different types of reforms and policy tools.
Learning skills: Throughout the first module, topics will be presented mainly by using theoretical models, although reference to empirical evidence will be made continuously. By the end of the module, students should be able to understand and explain the economic content, assumptions, limitations, policy implications and relevance of the models presented. Throughout the second module, topics will be discussed using both theoretical models and empirical tools, with continuous reference to the empirical evidence provided by recent scientific publications. By the end of the module, students should be able to handle various economic models and to interpret the results of empirical analyses.
Making judgements: By the end of the first module, students will be able to use economic analysis to make informed judgements on whether it is desirable to revise the current fiscal policy rules of the Eurozone and to express their views on the proposals for revision. By the end of the second module, students will be able to critically analyse the reasons and the consequences of government intervention in specific economic fields and to compare different types of reforms and policy tools.
Learning skills: Throughout the first module, topics will be presented mainly by using theoretical models, although reference to empirical evidence will be made continuously. By the end of the module, students should be able to understand and explain the economic content, assumptions, limitations, policy implications and relevance of the models presented. Throughout the second module, topics will be discussed using both theoretical models and empirical tools, with continuous reference to the empirical evidence provided by recent scientific publications. By the end of the module, students should be able to handle various economic models and to interpret the results of empirical analyses.
Lesson period: Second 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
Second trimester
Course syllabus
FIRST PART
Budget balance. Automatic stabilizers. The dynamic government budget constraint. The arithmetic of debt. The intertemporal government budget constraint. Debt sustainability. Fiscal space. Ricardian equivalence. Tax smoothing. The golden rule of public investment. Deficit bias. Monetary financing and fiscal dominance. Multiple equilibria and debt crises. The dangers of large public debts. Reducing public debts. Public debt default. Fiscal rules and fiscal institutions. Fiscal rules in the Eurozone.
Budget balance. Automatic stabilizers. The dynamic government budget constraint. The arithmetic of debt. The intertemporal government budget constraint. Debt sustainability. Fiscal space. Ricardian equivalence. Tax smoothing. The golden rule of public investment. Deficit bias. Monetary financing and fiscal dominance. Multiple equilibria and debt crises. The dangers of large public debts. Reducing public debts. Public debt default. Fiscal rules and fiscal institutions. Fiscal rules in the Eurozone.
Prerequisites for admission
macroeconomics, microeconomics
Teaching methods
lectures in presence
Teaching Resources
PRIMO MODULO - POLITICA DI BILANCIO E DEBITO PUBBLICO (Prof. Santoni)
· Slides delle lezioni.
· Bénassy-Quéré, A. et al (2019). Politica economica. Teoria e pratica. Bologna: il Mulino. Capitolo 3: Politica di bilancio, pp. 161-233; cap. 283-287 (dominanza fiscale).
· D'Antoni, M. e Nocella, G. (2021). "Le regole fiscali europee: prospettive di riforma e problemi aperti". Cap 10 in Arachi, G., Baldini, M e Toso, S. (a cura di) La finanza pubblica italiana. Rapporto 2020, Bologna, Il Mulino, 2021, pp. 199-222. Il capitolo può essere consultato e scaricato utilizzando la piattaforma Darwinbooks de il Mulino, se si accede mediante i servizi digitali della Biblioteca SPES (è necessaria inoltre la registrazione a Darwinbooks).
· Panizza, U. (2019). "Come risolvere il problema del debito pubblico italiano: un'analisi critica delle soluzioni facili". Rivista di Politica Economica, pp. 135-157. Link: Rivista_di_politica_economica_Panizza_n1_2019_Confindustria.pdf
SECONDO E TERZO MODULO: L'INTERVENTO PUBBLICO NELL'ECONOMIA (Prof. Fasani)
· Materiali:
o Slides delle lezioni.
o Testi di riferimento:
Bénassy-Quéré, A. et al (2019). Politica economica. Teoria e pratica. Bologna: il Mulino.
Pepi De Caleo, Brucchi Luchino (2015) Manuale di Economia del Lavoro, Il Mulino
The CORE Team (2018) L'economia - Comprendere il mondo che cambia, Il Mulino (volume liberamente consultabile al link: https://www.core-econ.org/the-economy/it/ )
o Letture aggiuntive (caricate dal docente su Ariel)
· Riferimenti dettagliati:
1. INTRODUZIONE ALLA POLITICA ECONOMICA: Bénassy-Quéré, A. et al (2019), capitoli 1 e 2.
2. DISEGUAGLIANZA, MOBILITA' SOCIALE E REDISTRIBUZIONE: The CORE Team (2018), capitolo 5; Pepi De Caleo, Brucchi Luchino (2015), capitolo 12.
3. INVESTIMENTO IN CAPITALE UMANO E SPESA IN ISTRUZIONE: Pepi De Caleo, Brucchi Luchino (2015), capitoli 6.
4. POLITICHE DEL LAVORO E DELL'OCCUPAZIONE: Bénassy-Quéré, A. et al (2019), capitolo 8; Pepi De Caleo, Brucchi Luchino (2015), capitoli 3, 4 e 5.
· Slides delle lezioni.
· Bénassy-Quéré, A. et al (2019). Politica economica. Teoria e pratica. Bologna: il Mulino. Capitolo 3: Politica di bilancio, pp. 161-233; cap. 283-287 (dominanza fiscale).
· D'Antoni, M. e Nocella, G. (2021). "Le regole fiscali europee: prospettive di riforma e problemi aperti". Cap 10 in Arachi, G., Baldini, M e Toso, S. (a cura di) La finanza pubblica italiana. Rapporto 2020, Bologna, Il Mulino, 2021, pp. 199-222. Il capitolo può essere consultato e scaricato utilizzando la piattaforma Darwinbooks de il Mulino, se si accede mediante i servizi digitali della Biblioteca SPES (è necessaria inoltre la registrazione a Darwinbooks).
· Panizza, U. (2019). "Come risolvere il problema del debito pubblico italiano: un'analisi critica delle soluzioni facili". Rivista di Politica Economica, pp. 135-157. Link: Rivista_di_politica_economica_Panizza_n1_2019_Confindustria.pdf
SECONDO E TERZO MODULO: L'INTERVENTO PUBBLICO NELL'ECONOMIA (Prof. Fasani)
· Materiali:
o Slides delle lezioni.
o Testi di riferimento:
Bénassy-Quéré, A. et al (2019). Politica economica. Teoria e pratica. Bologna: il Mulino.
Pepi De Caleo, Brucchi Luchino (2015) Manuale di Economia del Lavoro, Il Mulino
The CORE Team (2018) L'economia - Comprendere il mondo che cambia, Il Mulino (volume liberamente consultabile al link: https://www.core-econ.org/the-economy/it/ )
o Letture aggiuntive (caricate dal docente su Ariel)
· Riferimenti dettagliati:
1. INTRODUZIONE ALLA POLITICA ECONOMICA: Bénassy-Quéré, A. et al (2019), capitoli 1 e 2.
2. DISEGUAGLIANZA, MOBILITA' SOCIALE E REDISTRIBUZIONE: The CORE Team (2018), capitolo 5; Pepi De Caleo, Brucchi Luchino (2015), capitolo 12.
3. INVESTIMENTO IN CAPITALE UMANO E SPESA IN ISTRUZIONE: Pepi De Caleo, Brucchi Luchino (2015), capitoli 6.
4. POLITICHE DEL LAVORO E DELL'OCCUPAZIONE: Bénassy-Quéré, A. et al (2019), capitolo 8; Pepi De Caleo, Brucchi Luchino (2015), capitoli 3, 4 e 5.
Assessment methods and Criteria
Written exam with multiple choice and open questions
A mid-term exam is scheduled at the end of the first part. The exam is made up of 5 multiple choice questions and 1 open question/exercise. The exam lasts 75 minutes.
The second mid-term exam is made up of 7 multiple choice questions and 1 open question/exercise. The exam lasts 80 minutes (to sit the second mid-term students must pass the first mid-term)
General exams include 3 multiple choices and 1 open question/exercise on the first part (Prof. Santoni) and 7 multiple choices questions and 1 open questions on the second part (Prof. Fasani). The exams last 2 hours.
A mid-term exam is scheduled at the end of the first part. The exam is made up of 5 multiple choice questions and 1 open question/exercise. The exam lasts 75 minutes.
The second mid-term exam is made up of 7 multiple choice questions and 1 open question/exercise. The exam lasts 80 minutes (to sit the second mid-term students must pass the first mid-term)
General exams include 3 multiple choices and 1 open question/exercise on the first part (Prof. Santoni) and 7 multiple choices questions and 1 open questions on the second part (Prof. Fasani). The exams last 2 hours.
SECS-P/02 - ECONOMIC POLICY - University credits: 9
Lessons: 60 hours
Professors:
Fasani Francesco Maria, Santoni Michele
Educational website(s)
Professor(s)
Reception:
Tuesday: 17:00-19:00 (by appointment)
Office 215 (Via Livorno 1) or Teams
Reception:
Office and feedback hours. Third term (from 11th April to 20th June 2025): Friday 8:30-11:30 hh. Office hours at 10:15-13:15 on Friday 13th June 2025.
Online on MT.