Ateneo - UPO

The course aims at introducing the students to major issues of public economics and public finance, starting from the justifications and the limits of State intervention in modern economic systems (market failures). The course then addresses the study of public revenues and public spending, both in terms of theoretical analysis and with reference to the Italian institutional context.

Main textbooks: BOSI P., Corso di scienza delle finanze, Il Mulino, Bologna, 2023. BOSI P., GUERRA M. C., I tributi nell’economia italiana, Il Mulino, Bologna, 2026. DAL SANTO F., MICHELETTO L., Scienza delle finanze – Esercizi, EGEA, Milano, 2026. Additional textbooks: BORDIGNON M., TURATI G., Debito pubblico. Come ci siamo arrivati e come sopravvivergli, Vita e Pensiero, Università Cattolica di Milano, 2022. REVIGLIO F., La spesa pubblica. Conoscerla e riformarla, Marsilio Editori, Venezia, 2007. STIGLITZ J. E., Il ruolo economico dello Stato, Il Mulino, Bologna, 1997. The parts of the textbooks to be prepared for the examination, jointly with additional references, will be communicated in the class. The teaching material will be available on DIR web site and is a compulsory part of the program.

Being able to apply the theories developed by Public Economics to understand how the public sector operates in the real world.

These objectives are achieved through the acquisition of the concepts, fundamental principles, and reasoning used to present and discuss economic models: identification of the economic problem, assumptions, analysis of mechanisms and their resulting implications and applications. This knowledge is intended to serve as a prerequisite for developing the ability to reflect on and form independent judgments regarding economic issues and the ways in which governments intervene in modern free-market economic systems.

Students must have passed the exam of Microeconomics.

Proficiency in the Italian language and the ability to express oneself appropriately in both written and oral forms are required, as specified by the knowledge level required for degree program enrollment (level B2) for non-Erasmus international students.

Lectures with frequent interactions between teacher and students. Course attendance is optional but strongly recommended.

All academic credits (CFU) are delivered through face-to-face teaching methods (in-person lectures).

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/services-students-physical-or-learning-disabilities. Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The exam is written and integrated with the module of Economic Policy, held by Prof. Ferruccio Ponzano. For the Public Economics module, students are required to answer 10 multiple choice questions and 4 open questions. Total exam time (Public Economics and Economic Policy): 2 hours. At the discretion of the examination committee, students may be required to attend an oral exam, the outcome of which will contribute to the determination of the final grade. For more detailed information, see the exam rules published on DIR websites of Public Economics and Economic Policy courses.

The exam awards up to a maximum of 32 points. To pass the course, students must obtain a score greater than or equal to 18 points. Cum laude (lode) is awarded when students achieve a total score greater than or equal to 31 points. If the instructor requires an oral exam, the final grade will also take into account the performance in the oral interview.
In relation to the educational objectives, a grade between 18 and 24 implies knowledge of basic conceptual and graphical tools; a grade between 25 and 28 implies knowledge of basic graphical and algebraic tools and a good understanding of the economic mechanisms underlying the models; a grade greater than or equal to 29 implies the complete achievement of the educational objectives.

Notes: During the written exam, students are not permitted to consult textbooks, notes, or any other materials. The use of electronic devices is prohibited, except when strictly required to complete the exam. The use of artificial intelligence tools or any smart devices (including smartphones, smartwatches, smart glasses, or similar devices) is strictly prohibited. Any violation of these rules will result in the invalidity of the exam and lead to disciplinary proceedings.
Students are also required to present a valid form of identification (e.g., a national identity card or driver's licence) for identity verification before the exam.

The course emphasizes how micro- and macro-economic theories analyzed in other courses are used for the definition of government interventions concerning revenues, expenditure and market regulation. Particular emphasis is placed on the importance of the institutional aspects.

The program is divided into four parts:
1) the justifications and the limits of public intervention (asymmetric information, externalities, public goods, imperfect competition);
2) the economic analysis of government revenues, in particular, taxation and the Italian tax system;
3) the public administration and the public finance in Italy;
4) the economic analysis of public expenditure, in particular the government intervention for the Welfare State.

No specific sessions are devoted to gender-related topics or dimensions. Although these are relevant to Public Economics, their proper treatment requires more advanced analytical tools and knowledge than the foundational ones provided in this course.

In alignment with the educational objectives of the Bachelor’s Degree in Business Administration, the course aims to achieve the following learning outcomes structured according to the Dublin Descriptors:

1) Knowledge and understanding ability: Understanding the motivations and the main activities carried out by the public sector in modern economic systems.

2) Capability to apply knowledge and understanding: Being able to apply the theories developed by Public Economics to understand how the public sector operates in the real world.

3) Capability to approach the subject in a critical manner: Use of economic analysis to discriminate between alternative models that help interpret the empirical evidence on public sector and public finance observed in different contexts.

4) Communication abilities: Being able to understand the impact in terms of efficiency and equity of government economic policy in a particular country.

5) Learning ability: Knowing the relevant literature on economic analysis of public sector and main public finance statistics in Italy and Europe.