OVERVIEW

This teaching unit introduces the role of the public sector in modern market economies, with particular attention to the economic analysis of taxation, public policies for income redistribution, and interventions in the presence of market failures.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims at analyzing public intervention in the economic system through the study of the main fiscal and public spending instruments. The goal is to interpret the issues connected to public economic activity by applying the tools of the welfare economics to assess the efficiency and equity of public intervention.

AIMS AND LEARNING OUTCOMES

The course investigates the public intervention in the economic system, through the study of the main fiscal instruments and public spending.

At the end of the teaching unit, the student will be able to:
- Describe the main reasons for State intervention in the economy, in relation to real cases discussed during lectures (Dublin Descriptor 1).
- Analyze market failures and specific situations that require State intervention (public goods, externalities, information asymmetries), applying concepts to practical examples (Dublin Descriptor 2).
- Explain the principles on which the tax system is based and assess the functioning of taxation with respect to societal well-being, through numerical and graphical exercises (Dublin Descriptor 2).
- Apply the tools of welfare economics to assess the efficiency and equity of public intervention, by solving problems proposed in class (Dublin Descriptor 2-3).
- Evaluate the effect of taxes and subsidies on the choices of taxpayers and firms, interpreting data and case studies (Dublin Descriptor 3).
- Analyze the determinants of tax evasion and the impact of enforcement policies, discussing real or simulated cases (Dublin Descriptor 2).

PREREQUISITES

Basic knowledge of microeconomics

TEACHING METHODS

Lectures and exercises.

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, atinclusione.economia@unige.it<mailto:inclusione.economia@unige.it>, and the Inclusion Office atinclusione.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 economy and public intervention: the economic role of the State

- Market failures: public goods, externalities

- Collective choice theory

- Economic analysis of taxes: tax incidence, excess burden, taxation and behaviour

- Tax evasion, erosion and tax avoidance

- Large areas of public expenditure: health, assistance, social security

RECOMMENDED READING/BIBLIOGRAPHY

Materials on Aulaweb

Rosen, H. S., Gayer, T.. Scienza delle finanze. McGraw-Hill.

Non-attending student: Rosen, H. S., Gayer, T.. Scienza delle finanze. McGraw-Hill. - Chapters: 1,3,4,5,7,14,15,16,17

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

September 2025

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The final exam, lasting 1 hour, is written and divided into two parts. The first part consists of multiple-choice questions; the second part consists of open-ended questions and exercises (open questions on theory, graphical analysis, numerical exercises)

ASSESSMENT METHODS

The written exam will assess the learning of the basic concepts covered during the course and the ability to apply knowledge in practical situations by correctly interpreting numerical and graphical examples. Each learning outcome will be verified through specific questions
(multiple-choice and open-ended), and the evaluation will consider clarity of exposition, correct use of terminology, and analytical skills.

FURTHER INFORMATION

Please contact the instructor for further information not included in the teaching unit description.