PUBLIC FINANCE
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Teaching methods
- Contacts/Info
It is necessary that the student knows basic principles of microeconomics. The course is held in Italian, therefore is required a sufficient level of understanding of the Italian language.
The final exam, lasting 1 hour and 30 minutes, is a written exam. The first part consists of 14 multiple-choice questions (correct answer +1 point; incorrect answer -0.25 points; no answer 0 points) and one open-ended question (10 lines of answers, scored from 0 to 4 points) on the theoretical part of the course. The second part consists of the interpretation of two graphs from those seen in class (each graphic interpretation is scored from 0 to 3 points), a short exercise (scored from 0 to 2 points), and two long exercises (each scored from 0 to 3 points). The exam is passed if the student answers 8 multiple-choice questions correctly AND if the total score for the first part is at least 8 points AND if the overall score is higher than 18. In all other cases, the exam must be repeated. A partial exam lasting 45 minutes, written, is required, which is half the time required for the full exam. A second partial exam is scheduled at the end of the course for those who pass the first exam. It will be structured according to the same rules as the first partial exam. If successful, the combined scores of the two partial exams will determine the overall grade. If one of the two partial exams fails, or if the combined score of the two exams is less than 18, the overall exam must be taken. There is no supplementary oral exam.
The principal aim of the course is to provide basic principles of the functioning of government revenues and expenditures, the structure of fiscal policies, the economic ratio behind choices and their consequences in distributive terms and regarding inequalities. At the end of the course the student will be able to: - evaluate fiscal policies under economic efficiency and equity, - provide justification of the economic mechanism behind fiscal policies, - compare different tax-benefit systems and calculate some results for simplified scenarios.
1. Introduction to public economics, Positive and normative analysis 2. Public goods, redistribution 3. Governmental budget, EU parameters, deficit 4. Pensions 5. healthcare expenditures, expenditures for education 6. Unemployment benefit and minimum income schemes 7. Tax definition and definition of the tax base 8. Income tax 9. Capital taxes 10. VAT and excises 11. Local and regional taxes 12. Wealth taxes
1. Fundamentals of Public Finance, Positive & Normative Analysis 2. Composition of public spending in Italy and in European countries; pay-as-you-go and funded pension systems; history of the Italian pension system and future challenges for the sustainability of pension spending; 3. Poverty, unemployment benefits, and income support policies; 4. State budget, EU constraints, deficit; 5. Italian healthcare system and healthcare expenditure; 6. Italian school system and education expenditure; 7. Basic elements of tax analysis: efficiency, the trade-off between equity and efficiency, personal taxes and individual behavior; 8. Personal income tax; 9. Indirect taxes, VAT, excise duties; 10. Taxes on corporations and productive activities, local taxes; 11. Taxes on capital and wealth, microsimulation models; 12. Wealth distribution, Gini index, Lorenz curve
The course is divided into lectures (45h) and lessons with exercises (12h), both provided with didactic material uploaded by instructors.
It's always possible to schedule an appointment to discuss course-related issues or for explanations/clarifications. Please use the link available on the course e-learning page, along with the instructor's email address, to schedule appointments outside of office hours. The Department offers a tutoring service. More detailed information is available at the following link: https://www.uninsubria.it/servizi/tutti-i-servizi/tutorato-dieco