Economic Policy

The aim of the first module (20 hours, 3 credits, EMA students) is to outline the main set of theories used by macroeconomists to understand the effects of fiscal policy, with a focus on the economic effects of the public debt. This knowledge will help students to understand and evaluate real-world government fiscal policies.
The second part of the course (40 hours, 6 credits, EMA and SIE students) covers a selection of political economy topics, adopting both a micro- and macro-economic perspective. Specifically, it will focus on the functioning and features of the social security systems, discussing the main reforms that affected the Italian system in the last decades. Then, after having analyzed the possible reasons and tools for government intervention in the economy, we will focus on regulated markets and discuss the privatization, unbundling and market entry reforms which have involved European countries since the '80s-'90s of the last century. The final part of the course covers topics related to the economics of innovation, presenting endogenous growth models, and discussing different types of innovation policies.

Applying knowledge and understanding: By the end of the first module students will be equipped with analytical tools for understanding what macroeconomists mean for public debt sustainability, why it matters, the pros and cons of introducing fiscal policy rules and budgetary institutions, how to interpret and evaluate fiscal policy rules in the Eurozone.
By the end of the second module students will acquire theoretical knowledge on a wide range of political economy topics and understand the impact of State intervention in different economic areas. Specifically, the information acquired will allow students to understand the functioning of social security systems, regulated markets, liberalization reforms and innovation policies.
Making judgements: By the end of the first module, students will be able to use economic analysis to make informed judgements on whether it is desirable to revise the current fiscal policy rules of the Eurozone and to express their views on the proposals for revision.
By the end of the second module, students will be able to critically analyze the reasons and the consequences of government intervention in specific economic fields and to compare different types of reforms and policy tools.
Learning skills: Throughout the first module, topics will be presented mainly by using theoretical models, although reference to empirical evidence will be made continuously. By the end of the module, students should be able to understand and explain the economic content, assumptions, limitations, policy implications and relevance of the models presented.
Throughout the second module, topics will be discussed using both theoretical models and empirical tools, with continuous reference to the empirical evidence provided by recent scientific publications. By the end of the module, students should be able to handle various economic models and to interpret the results of empirical analyses.