Public Economics and Applied Economics

This course aims, first, at endowing students with knowledge and tools useful to understand and analyse the main features of public sector role in the economy and at offering them knowledge of the main fiscal instruments and public expenditure programmes that characterize the Italian economy. Secondly, the course focuses on the developments in terms of choices under risk and uncertainty, intertemporal choices, social preferences and nudges. It then applies these decision models in different choice settings. To pursue these objectives, the course is structured in two sections, the first focused on the analysis of public sector intervention in the economy, the second on the analysis of individual and collective entities' choice behaviour. In detail, the course learning objectives are the following.

Knowledge and understanding: Knowledge of the main features of public sector role in the economy (motivations, aims, methods, and limitations) under both a normative and a positive perspective. Understanding of basic economic concepts underlying the theory of public finance and the role of public institutions. Ability to understand and critically discuss and evaluate the long-run and short-run problems of public finances in modern economies. Knowledge of the main fiscal instruments and public expenditure programmes that characterize the Italian economy. - Ability to analyse analytically how individuals make decisions; knowledge and understanding of the role of heuristics and cognitive biases in decision-making processes; knowledge of the developments in terms of choices under risk and uncertainty, intertemporal choices, social preferences and nudges.

Ability to apply knowledge and understanding: Being able to communicate proficiently and effectively using economic concepts; ability to critically analyse the debate on public operator's role in market economies; use concepts, models and theories to identify public intervention reasons and aims and to understand the working of fiscal policy and its impact on the economy. Read and understand official public finance documents. - Ability to translate the normative strategies of choice into concrete decision-making contexts; ability to recognize the intervention of heuristics; ability to apply the acquired knowledge in new contexts, learning to think about specific problems.

Independent evaluative judgement: Being able to evaluate public finance problems and alternative strategies for public intervention; ability to draw informed conclusions on public policies; ability to formulate autonomous judgements on official public finance documents. - Being able to recognize rational strategies and choice attitudes in decision-making problems; ability to draw informed conclusions about choice behaviours; critical thinking skills in decision-making contexts.

Communication skills: Ability to communicate, in a clear and unambiguous way, knowledge and ideas on public operator's role in market economies and on fiscal policies. - Ability to communicate, in a clear and unambiguous way, knowledge and ideas on human decision-making behaviour to specialist and non-specialist interlocutors.

Learning to learn: ability to autonomously read and understand public finance documents; ability to identify and evaluate the impact of public finance measures. - Ability to autonomously investigate further decision-making models and evidence on real choice behaviours.

At the end of the module, students will be able to understand, analyse and discuss public operator's role in the economy, its functioning and related problems, to discuss and evaluate the various public policies and to critically analyse the debate on public operator's role in market economies. Students will also be able to describe human behaviour in depth through a model that deviates from the one envisaged by the neoclassical economics approach, being able to identify similarities and differences; to autonomously and rigorously analyse numerous economic and social phenomena that characterize contemporary advanced economies; to understand causes and effects of risk, uncertainty and intertemporal and social preferences in individual and collective choices. Finally, students will also develop ability to communicate and autonomously deepen the acquired competencies.