law

ANGELO CASTALDO

The course has as target to provide the student with the fundamental toolsnecessary to understand and interpret public finance issues, the economics of the public sector, the economic effects of taxation and the fiscal federalism. Especially, by the end of the course students are expected to have acquired the following basic knowledge: 1) the language of public economists; 2) the implications of public intervention; 3) the theory of taxation; 4) the principal models of government policies towards poverty.

The course aims to provide students with a solid understanding of the role of public intervention in the economy, with particular emphasis on taxation and its effects on the decision-making of economic agents. Adopting an interdisciplinary law and economics approach, the course is designed to develop students’ ability to critically analyse the rationale and mechanisms of public intervention, understand the associated trade-offs between efficiency and equity outcomes, apply theoretical and analytical tools to the evaluation of economic policies, effectively communicate complex concepts, and build a foundation for further studies in both economic and legal disciplines.
More specifically, the course includes the following learning objectives:
- Knowledge and understanding: Students will acquire knowledge about the role of public intervention in the economy and the overall structure of tax systems. The course, using a law and economics approach, is oriented to develop the ability to understand both the reasons, efficiency and equity, behind public intervention in the economy and the economic effects generated by taxation on the economic choices of economic operators.
- Applying knowledge and understanding: students will be offered a set of conceptual/theoretical and analytical tools useful for interpreting the effects generated by public intervention on social interactions and for understanding the trade-offs associated with any form of public correction.
- Making judgements: through the knowledge and skills acquired, students will acquire awareness of the methods for analysing, evaluating and commenting, also critically and with autonomy of judgement, on the different technical options of public intervention within the economic system.
- Communication skills: students will be able to expound and interpret, with an interdisciplinary economic-legal approach, also with respect to the current reference context, the different possible options of public intervention in the economy.
- Learning skills: the knowledge of the teaching path outlined is geared to enable students to develop their learning skills for the study of both the complementary disciplines of a legal and economic nature.

Microeconomics and Macroeconomics

Propedeuticità: Economia politica

Faculty LAW
Generale Course LAUREA MAGISTRALE
Year II°
SCIENZA DELLE FINANZE - Students with surnames that belong to Letters G-O
Prof. CASTALDO ANGELO
Fisrt semester
72 Hours (9CFU)

THIS UNDERGRADUATE COURSE DEALS WITH FOUR PRINCIPAL SUBJECTS: 1) WELFARE ECONOMICS, 2) MARKET FAILURES AND PUBLIC INTERVENTION, 3) TAXATION AND 4) GOVERNMENT POLICIES TOWARDS POVERTY. The first two parts will be taught from half of September to the end of October, while the last two parts from the end of October to the first week of December.

The programme of the course is defined by the following conceptual sequence that is possibile to describe by recalling the chapters and the paragraphs of the course textbook (G. Campa, Economia e Finanza Pubblica, UTET 2017).

More in detail: The programme of the course is designed to supplement the legal background with the tools of economic analysis in order to better understand the effects of norms on the conduct of economic agents (legal subjects). After conveying the main theoretical aspects related to welfare economics (18 hours) and public intervention in the economy (18 hours), the course delves into the economic effects of taxes and tax shifting (15 hours), the theory of tax sacrifice and progressivity (12 hours), socio-economic inequalities and anti-poverty policies (9 hours). The programme, in its various thematic articulations, focuses on the evidence that every form of public intervention generates a trade-off between economic efficiency and social equity.

• INTRODUZIONE Dalla Scienza delle finanze all’Economia Pubblica
• CAP. 1 Ottimo paretiano e il primo teorema dell’economia del benessere. PARAGRAFI 1.1 -1.2 -1.3- 1.4 – 1.5 – 1.6
• CAP. 2 Il secondo teorema dell’economia del benessere. PARAGRAFI 2.1- 2.2- 2.3- 2.4- 2.5.
• CAP. 3 Il benessere sociale come guida per la valutazione della politica economica PARAGRAFI 3.1 -3.2 3.3 (escluso il sottoparagrafo 3.3.4.) -3.4 - 3-5
• CAP. 4 Il problema delle decisioni collettive PARAGRAFI 4.2 – 4.7 -4.8
• CAP. 5 e CAP. 6 Il fallimento del mercato e mercati contendili PARAGRAFI 5.1 -5.2 -5.3 -5.4 -5.5 - 5.6 -5.7 – 5.8 – 5.9 – 5.10 – 6.1 – 6.2
• CAP. 7 L’imposizione fiscale PARAGRAFI 7.1- 7.2- 7.3- 7.4- 7.5 – 7. 6- 7.9- 7.10 • CAP. 8 Effetti della tassazione PARAGRAFI 8.1- 8.2- 8.3- 8.4- 8.5- 8. 6- 8.7- 8.8 -8.9- 8.10- 8.11 2 • CAP. 9 Incidenza e traslazione delle imposte PARAGRAFI 9.1- 9.2- 9.3- 9.4
• CAP. 10 Progressività e discriminazione qualitativa PARAGRAFI 10.1- 10.2- 10.3- 10.4 – 10.5
• CAP. 11 L'imposta personale sul reddito PARAGRAFI 11.1- 11.2- 11.3- 11.4- 11.5- 11.6- 11.7- 11.8- Appendice cap. 11
• CAP. 12 L'imposta sulle società PARAGRAFI 12.1- 12.2- 12.3- 12.4
• CAP. 13 L'imposizione generale sui consumi PARAGRAFI 13.1- 13.2- 13.3- 13.4 – 13.5
• CAP. 18 Politiche di contrasto alla povertà PARAGRAFI 18.1- 18.2- 18.3- 18.4- 18.5- 18.6- 18.7- 18.8- 18.9- 18.10

On the in-depth of the role of the State intervention in the economy:
G. Campa “Economia e Finanza Pubblica” , UTET 2017 Letture suggerite: G. Campa “Evoluzione del ruolo dello Stato”, UTET 2017

Giuseppe Campa (2017). Economia e Finanza Pubblica, UTET

Giuseppe Campa (2017). L'evoluzione del ruolo dello Stato, UTET.

Per le attività seminariali:
Cooter et al. (2006). Il mercato delle regole, vol. I e II, Il Mulino

Lectures, practice, group-works seminar activities.

The seminar activity could be carried out in blended mode via the zoom platform (with lecturer in presence, and in accordance with the University's rules on student attendance, i.e. the percentage of students allowed to the live class is fixed by the University).

Attendance at lectures and seminar activities is optional.

Written exam and intermediate test (1h15m each)

The written exam is structured in the open response mode (5/6 questions) in order to evaluate two main aims of the educational targets of the course: 1) the systematic understanding of the foundations of the subject. The questions of the written exam (70%) are oriented to verify the comprehension and awareness of the student on the role of the State in the economy (market failures and social justice), on the foundation of tax systems, on the economic effects of taxation, on the main italian taxes, on the instruments for contrasting poverty; 2) the ability to interpret and discuss is verified in the remaining part (30%) of the written exam, through questions that require (for being answered) an acquired knowledge tha allows the student to link several arguments or to solve specific exercices.

Students that attend intermediate tests, face two written proofs of 1h15m each, that take place at the half and during the last week of the course.

Two intermediate tests are scheduled during the course. The final grade will be calculated as the average of the grades given in the partials according to the following grid:
- 18-23: sufficient preparation and ability to analyse with reference to the topics covered in the course
- 24-27: adequate and fair preparation and ability to analyse with reference to the topics covered in the course
- 28-30: excellent preparation and good ability to analyse with reference to the topics covered;
- 30L: excellent preparation and very good ability to analyse with reference to the topics covered.

In addition to the written exams, students can, on a voluntary base, partecipate to the law and economics seminarial initiative. Attached to this further activity an additive effort is demanded: a written group-work (20 pages max.) and a .ppt presentation to be used for an oral exposition of the work done in the class (note that: the seminarial activity are carried out in different class hours with respect to the ordinary course). These additional activities provide further elements (writing capacity and oral exposition) for the overall evaluation of the students.

- What is the allocative function in Musgrave's model?

- Also in light of the recent pandemic crisis, explain Wagner's Law and possible implications for public expenditure

- Explain why monopoly is a market failure ...

- What is the deadweight loss of monopoly?

- Explain Bowen's theorem ...

- In what does excess pressure consist?

- Explain the theorem of Barone ...

- In the context of anti-poverty policies, frame the social dividend ..

• Public Finance
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 1


• What is Public Finance and Government Intervention in the Economy
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap.1


• The First Theorem of Welfare Economics
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 2


• The Second Theorem of Welfare Economics and Social Welfare Functions
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 3


• Market Failures: Public Goods and Externalities
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 5


• Monopoly and Natural Monopoly
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 6


• General Principles of Taxation and the Economic Effects of Taxes
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 7-8


• Economic Effects of Taxes and Tax Shifting
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 9


• The Progressivity of the Personal Income Tax
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 10-11


• Indirect Taxes
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 12


• Corporate Income Tax
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 13


• Poverty Reduction/contrast Policies
  • Books: Economia e Finanza Pubblica, G. Campa, UTET, 2017, cap. 16