OVERVIEW

The course in Public Economics addresses the main issues concerning the role of the public sector in contemporary economic systems, with particular attention to the reasons, instruments and effects of public intervention in the economy.

Within the Bachelor’s degree programme, the course complements the study of individual economic choices and market functioning by introducing the analysis of collective decision-making processes, market failures and non-market mechanisms through which goods and services of collective interest are provided.

The course examines public expenditure, taxation, redistribution and regulation policies, assessing their effects in terms of allocative efficiency, distributive equity, financial sustainability and market functioning.

AIMS AND CONTENT

LEARNING OUTCOMES

The Course aims to analyze public intervention in the economic system, and to provide analytical tools to interpret the main problems related to public economic activity.

AIMS AND LEARNING OUTCOMES

By the end of the course, students will have acquired the knowledge and skills needed to understand, interpret and evaluate public intervention in the economy.

Knowledge and understanding
Students will be able to know and understand the theoretical foundations of Public Economics; the main economic functions of the State; the concepts of efficiency, equity, social welfare and redistribution; the fundamental theorems of welfare economics; the main forms of market failure; the characteristics of public goods, externalities and natural monopolies; collective choice mechanisms; the general structure of public accounts and the tax system; the economic principles of taxation; the role of the welfare state and redistributive policies.

Applying knowledge and understanding
Students will be able to apply the tools acquired in order to interpret the reasons for and effects of public intervention in markets; assess the allocative and distributive implications of public policies; analyse the economic effects of taxes on labour, consumption, production, investment, financing and location decisions; critically examine possible tax, pension, healthcare and welfare reforms; assess issues related to regulation, public debt sustainability and tax evasion.

Making judgements
Students will develop the ability to evaluate public intervention choices independently and critically, taking into account the possible trade-offs between efficiency, equity, financial sustainability and political-institutional consensus. They will also be able to compare different economic and fiscal policy alternatives, identifying their benefits, costs, limitations and distributive effects.

Communication skills
Students will acquire appropriate technical terminology and will be able to communicate the main concepts of Public Economics clearly and rigorously. They will be able to discuss issues related to public expenditure, taxation, welfare, regulation, public debt and tax evasion with representatives of public administration, firms, institutions and, more generally, within the economic and social debate.

Learning skills
Students will develop learning skills that will enable them to further explore independently the issues related to public intervention in the economy. The theoretical, graphical and applied tools provided by the course will allow students to continue studying public policies, public finance, welfare economics, economic regulation and tax systems.

PREREQUISITES

A basic knowledge of microeconomic principles is useful, particularly with reference to consumer and firm behaviour, market equilibrium, allocative efficiency and the main market structures.

Advanced knowledge is not required: the concepts needed to follow the course will be recalled during the lectures.

TEACHING METHODS

Attendance is recommended. The teaching will include lessons, seminars, lectures, case analyzes, and exercises to be carried out at home and/or in the classroom. Please refer to the AulaWeb teaching platform for any updates.

Students with disabilities, SLD or SEN

Students with disabilities, with SLD or with SEN are reminded that, to request exam accommodations, they must first upload their certification to the University website at servizionline.unige.it <https://servizionline.unige.it/>, in the “Students” section. The documentation will be checked by the University’s Services for the Inclusion of Students with Disabilities and with SLD.

At the beginning of the course, students are advised to contact the lecturer to agree on exam arrangements which, while respecting the learning objectives of the course, take individual learning needs into account.

To request compensatory tools or dispensatory measures, students with disabilities or SLD must fill in the dedicated Webform available athttps://unige.it/disabilita-dsa, at least 7 working days before the exam.

Students with SEN may instead send their request by e-mail to the lecturer, copying the Department Representative, Prof. Elena Lagomarsino, at inclusione.economia@unige.it<mailto:inclusione.economia@unige.it>, and the Inclusion Office at   inclusione.studenti@info.unige.it <mailto:inclusione.studenti@info.unige.it>.

Requests from students will be assessed by the lecturer and may be approved or rejected.

SYLLABUS/CONTENT

The course addresses the foundations of Public Economics and State intervention in the economy. After introducing the economic functions of the public sector and the main reasons for public intervention, the course analyses the criteria of efficiency and equity, Pareto optimality, the First and Second Theorems of Welfare Economics, market failures and the role of collective institutions.

The first part of the course is devoted to public goods, collective consumption, externalities and collective choice mechanisms, with attention to problems of resource allocation, income redistribution and aggregation of individual preferences.

The second part is devoted to the analysis of public accounts, the tax system and the economic principles of taxation. The course will examine tax incidence, equity and efficiency in taxation, the excess burden of taxation and the main effects of taxes on labour, production, saving, investment, financing and location decisions. 

The course also analyses the redistributive role of the State, the economic justifications for redistributive policies, inequality and poverty, as well as the characteristics of the welfare state. Pension, healthcare and social assistance policies will be examined, together with the insurance-solidarity principle, the crisis of the welfare state and new directions in welfare development.

Finally, the course includes in-depth analysis of selected topics: natural monopoly, regulation and tariffs; public debt sustainability; theoretical models and estimation issues concerning tax evasion; economic planning and the evaluation of public policies.

RECOMMENDED READING/BIBLIOGRAPHY

Information on the textbook and other additional supports (slides, homework texts, ...) will be made available on Aulaweb

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

I semester September-December 2026 according to the calendar pubished on Easyacademy

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The examination consists of a written test designed to assess students’ knowledge and understanding of the course topics, their ability to apply the concepts and tools acquired, their autonomy of judgement and their communication skills.

The written test consists of five open-ended questions and one numerical exercise, based on the exercises discussed during the course. Each open-ended answer is worth up to 5/30, while the numerical exercise is worth up to 10/30. The examination is passed with a final mark of at least 18/30.

The lecturer reserves the right to conduct a subsequent oral examination if there are doubts or reservations about the overall assessment of the written test.

There is no limit to the number of examination sessions a student may attend.

ASSESSMENT METHODS

In order to verify the expected learning outcomes, the examination is structured to assess students’ knowledge and understanding of the course topics, their ability to apply the concepts and tools acquired, their autonomy of judgement and their communication skills.

The examination includes open-ended questions requiring students to autonomously analyse and critically evaluate issues and policy choices in public finance and Public Economics. The questions may be inspired by topics currently on the agenda of policy makers and by the contemporary economic debate, including the economic effects of alternative tax reforms and public policies concerning taxation, welfare, income distribution and public expenditure, implemented at different levels of government, both central and local.

These issues will be assessed with reference to both equity and efficiency.

Assessment criteria include:

• quality and clarity of exposition;
• ability to formalise the analysis, also through graphical or analytical tools;
• use of appropriate technical terminology;
• autonomy of thought;
• ability to develop critical judgements.

FURTHER INFORMATION

No further informaion