The objective of this course is to understand the role, the characteristics and the functioning of the public sector, in a positive and normative context. Socialist versus market economy, the planning of the economy versus prices as means to allocate resources. The conditions of equivalence between the two systems and the condition of failure of the one or the other. We study Welfare Economics as the theoretical basis for the comparison, and to understand why and when the market economy needs to be corrected by the intervention of the public in order to reach efficiency and/or more equity.
At the end of this course students will
1) Understand the historical and philosophical reasons for the presence of the public sector in the economy, and how it interacts in free exchange economy. Understand the prerogatives and limitations of public intervention also in reason of the relative jurisdiction (local versus state, country etc…)
2) Be able to apply the acquired knowledge for analyzing the intervention of the public sector, in relation with the motivation and the effects sought. Be able also to critically evaluate public interventions on the basis of empirical and quantitative analyses.
3) Be able to autonomously and critically carry on analyses of issues related to the subject.
4) Be able to express with an appropriate scientific language.
5) Develop the ability to independently advance her comprehension of the subject.