Public Economics
A.Y. 2025/2026
Learning objectives
The course aims to explain the motivations of public intervention in the economic system, by introducing the concepts of equity and efficiency, redistribution, public goods and externalities. It shows the students how to analyse the public intervention options in the economic system, by studying the regulatory role of governments, the main fiscal instruments, including taxes and non-price policies such as nudges, as well as public spending interventions. Public operator's role in market economies, the functioning of national governments and their decision-making strategies will be discussed, with particular attention to the analysis of economic policies and by proposing some applied cases to support the theoretical basic concepts of the functioning of public spending and taxation systems.
Expected learning outcomes
At the end of the course the student will have developed critical skills to analyse the functioning of national and local governments. He/she will be able to discuss and evaluate the various public policies, by using the tools provided, and to critically analyse the debate on public operator's role in market economies.
Lesson period: Second trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Second trimester
Course syllabus
1) Introduction to public economics and review of tools
2) Role of the government I: Externalities
3) Role of the government II: Public Goods
4) Role of the government III: Social Insurance
6) Taxation and Redistribution I: Background and tax incidence
7) Taxation and Redistribution II: Labor Income Taxes and Transfers
8) Taxation and Redistribution III: Capital Income Taxation
2) Role of the government I: Externalities
3) Role of the government II: Public Goods
4) Role of the government III: Social Insurance
6) Taxation and Redistribution I: Background and tax incidence
7) Taxation and Redistribution II: Labor Income Taxes and Transfers
8) Taxation and Redistribution III: Capital Income Taxation
Prerequisites for admission
Microeconomics and microeconomics courses
Teaching methods
Lectures and practical exercises
Teaching Resources
Jonathan Gruber, Public Finance and Public Policy, 2022, 7th ed., Macmillan is the main textbook (the lectures follow loosely the Gruber book). Earlier editions of the textbook are totally fine.
References to other readings discussed in the lecture will be provided on MyAriel platform.
References to other readings discussed in the lecture will be provided on MyAriel platform.
Assessment methods and Criteria
The final assessment will be carried out exclusively by means of a written examination. Final exams are closed books and closed notes (only a basic calculator is allowed).
Professor(s)