Management Engineering

GIUSEPPE PASQUALE ROBERTO CATALANO

The course aims to provide the basics for understanding the reasons behind public intervention in the economic system through the illustration and application of the main interpretative models, as well as the analysis of the institutional governance of the European and Italian systems. To this end, economic theories on the public sector as a whole are explored, as well as those relating to specific sub-sectors (such as transport, healthcare, education, etc.). Furthermore, the course aims to enable students to analyse and highlight the evolution of Italian and European public finance, taking into account the main structural elements of ongoing reforms, also in order to seize possible employment opportunities.

Formal prerequisite knowledge: none.
Recommended previous knowledge: the course in based on prior knowledge in microeconomics and macroeconomics at an intermediate level. It is preferable that students have attended Industrial Organization course.

This course covers theory and empirical evidence on the role of the government in a market economy and develops along the following main topics:
1) The economic role of State in the economy
2) Reasons and scope of public intervention: (i) production of public goods (ii) market failures
3) The characteristics of public organizations
4) Introduction to organizational economics and an overview of policies for competition
5) Italian public finance in the European context: national budget and some historical trends
6) The balance between fiscal decentralization and upward federalism: the role of the European Union
7) Spending for the welfare state: a focus on the Italian pension system
8) Case study: transportation economics

The course is based on lecture notes provided by the instructor.
Reference books:
P. Bosi, Corso di scienza delle finanze (VII ed.), Bologna, Il Mulino, 2015, chapters: 1-2-6-7-8.
G. Brosio, Introduzione all’economia dell’organizzazione, Roma, La Nuova Italia Scientifica, 1995, chapters: 1-2-4

The course is based on 60 hours of lectures.
After presenting the main topics of the course (theoretical models and applications), students are expected to participate in preparing group presentations on the main areas of public intervention.

Class attendance is strongly recommended. Keep up with the course material and lectures, and actively participate during the lecture.

The evaluation and marking of the students will be based on:
a) oral examination on the topics covered in the course;
b) a presentation based on issues agreed upon during the course and a public debate among students.
The student should know fundamental concepts and basic models of public economics, as well as major actual policies and examples of issues currently on the political agenda.

Describe the concepts of rivalry and exclusion in goods
Discuss how the presence of externalities causes market failure
What is meant by adverse selection and moral hazard?
Provide some examples of policies for competition
Provide an overview of Italian public institutions
Define the main indicators used for public finance analysis
Explain the principle of subsidiarity
Describe the main methods for pension calculation
Discuss the reasons behind public intervention in the transport sector