PUBLIC ECONOMICS

International Teaching PUBLIC ECONOMICS

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8861200005
DEPARTMENT OF ECONOMICS AND STATISTICS
Corso di Dottorato (D.M.226/2021)
ECONOMICS AND POLICY ANALYSIS OF MARKETS AND FIRMS
2022/2023



OBBLIGATORIO
YEAR OF COURSE 1
YEAR OF DIDACTIC SYSTEM 2022
FULL ACADEMIC YEAR
CFUHOURSACTIVITY
315LESSONS
Objectives
THE GOAL OF THE COURSE IS TO STUDY A NUMBER OF IMPORTANT RESULTS OF MODERN PUBLIC ECONOMIC THEORY.

THE FIRST MODULE FOCUSES ON PARETO OPTIMALITY; COMPETITIVE EQUILIBRIUM AND THE FUNDAMENTAL THEOREMS OF WELFARE ECONOMICS.
WE SPECIFICALLY FOCUS ON THE ANALYTICAL DERIVATION OF THE FIRST THEOREM OF WELFARE ECONOMICS IN THE STATIC GENERAL ECONOMIC EQUILIBRIUM MODEL IN PRESENCE OF PUBLIC GOODS AND EXTERNALITIES.

THE SECOND MODULE DEALS WITH THE THEORY AND EMPIRICS OF ECONOMIC ANALYSIS OF CRIMES.

THE THIRD MODULE FOCUSES ON THE THEORY OF TAX EVASION

THE FOURTH MODULE INVESTIGATES THE NORMATIVE FOUNDATIONS AND UNDERPINNINGS OF THE MODERN APPROACH TO SOCIAL WELFARE THEORY.

IN THE FIFTH MODULE MEASUREMENT STRATEGIES FOR THE COMPARISON OF DIFFERENT INCOME DISTRIBUTIONS IN TERMS OF SOCIAL WELFARE, INEQUALITY AND POVERTY ARE DISCUSSED.
Prerequisites
PARTICIPANTS SHOULD BE FAMILIAR WITH:
- 1ST AND 3RD MODULES: MICROECONOMIC THEORY AS PRESENTED IN THE UNDERGRADUATE TEXTBOOK, BASIC CALCULUS AND LINEAR OPTIMIZATION (I.E., LAGRANGIAN METHOD);

- 2ND, 4-5TH MODULES: BASIC STATISTICAL CONCEPTS SUCH AS OF MULTIPLE REGRESSION ANALYSIS.

Contents
1ST MODULE: FIRST THEOREM OF WELFARE ECONOMICS IN A GENERAL EQUILIBRIUM MODEL (3H +3H)
UNIT 1 – INTRODUCTION TO WELFARE ECONOMICS
UNIT 2 – PARETO OPTIMALITY IN A COMPETITIVE GENERAL EQUILIBRIUM MODEL
UNIT 3 – EXTERNALITIES AND PARETO OPTIMALITY; COASE THEOREM AND PIGOUVIAN TAXES
UNIT 4 – PUBLIC GOODS AND PARETO OPTIMALITY; THE SAMUELSON RULE

2ND MODULE: “INTRODUCTION TO ECONOMICS OF CRIME” (3 H)
UNIT 1 – THEORY OF ECONOMIC ANALYSIS OF CRIMES; BECKER’S MODEL (1968)
UNIT 2 – EMPIRICAL ANALYSIS OF CRIMES

3RD MODULE: “INTRODUCTION TO THE THEORY OF TAX EVASION” (2 H)
UNIT 1 – THE THEORY OF THE TAX EVASION:
THE BASIC MODEL;
SOME EXTENSIONS: TAX MORALE, SOCIAL STIGMA

UNIT 4 - FOUNDATIONS OF SOCIAL WELFARE THEORY, WITH A DISTINCTION BETWEEN THE APPROACH OF THEORIES OF JUSTICE AND THE AXIOMATIC ONE (A LA ARROW).

UNIT 5 - MEASUREMENT STRATEGIES FOR THE COMPARISON OF INCOME (AND NON-INCOME) DISTRIBUTIONS IN TERMS OF SOCIAL WELFARE, INEQUALITY AND POVERTY.
Teaching Methods
FRONTAL LESSONS
Verification of learning
THE ACHIEVEMENT OF THE OBJECTIVES OF THE COURSE IS VERIFIED BY PROJECT WORK.
Texts
1ST MODULE: FIRST THEOREM OF WELFARE ECONOMICS IN A GENERAL EQUILIBRIUM MODEL (3H +3H)
READING LIST:
*LAFFONT JEAN-JACQUES (1988). FUNDAMENTALS OF PUBLIC ECONOMICS. MIT PRESS: CAMBRIDGE, MASSACHUSETTS.
COASE, R., ( 1960), THE PROBLEM OF SOCIAL COST. JOURNAL OF LAW AND ECONOMICS, 1-44.
SALANIÉ BERNARD (2000), THE MICROECONOMICS OF MARKET FAILURES, MIT PRESS, CAMBRIDGE, MASSACHUSETTS.
SAMUELSON, P.A., (1954). THE PURE THEORY OF PUBLIC EXPENDITURE. REVIEW OF ECONOMICS AND STATISTICS 36, 387-389.

2ND MODULE: “INTRODUCTION TO ECONOMICS OF CRIME” (3 H)

READING LIST - UNIT 1 – THEORY OF ECONOMIC ANALYSIS OF CRIMES:
*ANUPAMA JACOB (2011) ECONOMIC THEORIES OF CRIME AND DELINQUENCY, JOURNAL OF HUMAN BEHAVIOR IN THE SOCIAL ENVIRONMENT, 21,3: 270-283.
*BECKER GARY S. (1968). CRIME AND PUNISHMENT: AN ECONOMIC APPROACH. THE JOURNAL OF POLITICAL ECONOMY, 76(2):169-217.
BECKER GARY S., LANDES WILLIAM M. (EDS) (1974), ESSAYS IN THE ECONOMICS OF CRIME AND PUNISHMENT, NEW YORK, COLUMBIA UNIVERSITY PRESS.
EHRLICH ISAAC (1973). PARTICIPATION IN ILLEGITIMATE ACTIVITIES: A THEORETICAL AND EMPIRICAL INVESTIGATION. JOURNAL OF POLITICAL ECONOMY, 81( 3): 521–565.
*FREEMAN RICHARD B. (1999). THE ECONOMICS OF CRIME. HANDBOOK OF LABOR ECONOMICS, VOLUME 3 (CHAPTER 52), EDITED BY O. ASHENFELTER AND D. CARD. ELSEVIER SCIENCE B.V.
LEVITT STEVEN D., MILES THOMAS J., (2006). ECONOMIC CONTRIBUTIONS TO THE UNDERSTANDING OF CRIME, ANNUAL REVIEW OF LAW AND SOCIAL SCIENCE, 2: 147-164.

READING LIST - UNIT 2 – EMPIRICAL ANALYSIS OF CRIMES:
*BUN, M.J.G., KELAHER, R., SARAFIDIS, V. ET AL. (2020) CRIME, DETERRENCE AND PUNISHMENT REVISITED. EMPIR ECON 59, 2303–2333
CHIRICOS, THEODORE G. (1987), ‘RATES OF CRIME AND UNEMPLOYMENT: AN ANALYSIS OF AGGREGATE RESEARCH EVIDENCE’, SOCIAL PROBLEMS, 34: 187-212.
*ENGELEN P., LANDER M.W., VAN ESSEN M.(2016). WHAT DETERMINES CRIME RATES? AN EMPIRICAL TEST OF INTEGRATED ECONOMIC AND SOCIOLOGICAL THEORIES OF CRIMINAL BEHAVIOR, THE SOCIAL SCIENCE JOURNAL, 53(2): 247-262.
EIDE, ERLING, JØRGEN AASNESS AND TERJE SKJERPEN (1994), ECONOMICS OF CRIME: DETERRENCE AND THE RATIONAL OFFENDER, CONTRIBUTIONS TO ECONOMIC ANALYSIS, AMSTERDAM, OXFORD AND TOKYO, NORTH-HOLLAND.
*FAJNZYLBER PABLO, LEDERMAN DANIEL, LOAYZA NORMAN (2002). WHAT CAUSES VIOLENT CRIME? EUROPEAN ECONOMIC REVIEW, 46:1323-1357.
DI TELLA R., SCHARGRODSKY E. (2004). DO POLICE REDUCE CRIME? ESTIMATES USING THE ALLOCATION OF POLICE FORCES AFTER A TERRORIST ATTACK. AMERICAN ECONOMIC REVIEW, 94 (1): 115– 33.
LEWIS DONALD E. (1987). THE ECONOMICS OF CRIME: A SURVEY, ECONOMIC ANALYSIS AND POLICY, 17(2): 195-219.

3RD MODULE: “INTRODUCTION TO THE THEORY OF TAX EVASION” (2 H)
READING LIST - UNIT 1: THE THEORY OF THE TAX EVASION:
*ALLINGHAM, M., SANDMO, A., 1972. INCOME TAX EVASION: A THEORETICAL ANALYSIS. JOURNAL OF PUBLIC ECONOMICS 1, 323–338.
ALM, J., 2012. MEASURING, EXPLAINING, AND CONTROLLING TAX EVASION: LESSONS FROM THEORY, EXPERIMENTS, AND FIELD STUDIES. INTERNATIONAL TAX AND PUBLIC FINANCE 19, 54-77.
*ALM, J. (2019), WHAT MOTIVATES TAX COMPLIANCE? JOURNAL OF ECONOMIC SURVEYS, 33(2): 353–388
*DELL’ANNO R. (2009) TAX EVASION, TAX MORALE AND POLICY MAKER’S EFFECTIVENESS. JOURNAL OF SOCIO-ECONOMICS, 38(6): 988-997.
HASHIMZADE, N., MYLES, G. D. AND TRAN-NAM, B. (2013). APPLICATIONS OF BEHAVIOURAL ECONOMICS TO TAX EVASION. JOURNAL OF ECONOMIC SURVEYS, 27,(5). 941–977.
MYLES GARETH D. (1995). PUBLIC ECONOMICS (CHAPTER 12). CAMBRIDGE UNIVERSITY PRESS. UK.
SLEMROD, J. (2012). AN EVASIVE TOPIC: THEORIZING ABOUT THE HIDDEN ECONOMY. INTERNATIONAL TAX AND PUBLIC FINANCE 19, 5-24.
SLEMROD, J., YITZHAKI S.. (2002). TAX AVOIDANCE, EVASION, AND ADMINISTRATION, HANDBOOK OF PUBLIC ECONOMICS, EDITED BY ALAN AUERBACH AND MARTIN FELDSTEIN, VOLUME 3, NORTH-HOLLAND, 2002, PP. 1423-1470.

4TH MODULE:
BLACKORBY, C. ET AL. (2001), INCOME INEQUALITY MEASUREMENT: THE NORMATIVE APPROACH, IN JACQUES SILBER EDS., HANDBOOK OF INCOME INEQUALITY MEASUREMENT, SPRINGER.

FLEURBAEY M. AND MANIQUET F. (2011), COMPENSATION AND RESPONSIBILITY, IN K.J. ARROW, A. SEN, AND K. SUZUMURA EDS., HANDBOOK OF SOCIAL CHOICE AND WELFARE, ELSEVIER NORTH-HOLLAND.

KOLM, S.-C. (2001), THE RATIONAL FOUNDATIONS OF INCOME INEQUALITY MEASUREMENT, IN JACQUES SILBER EDS., HANDBOOK OF INCOME INEQUALITY MEASUREMENT, SPRINGER.

ROEMER J. AND TRANNOY (2014), EQUALITY OF OPPORTUNITY, IN A. ATKINSON AND A. BOURGUIGNON EDS., HANDBOOK OF INCOME DISTRIBUTION, ELSEVIER NORTH-HOLLAND.

SUZUMURA (2011), WELFARISM, INDIVIDUAL RIGHTS AND PROCEDURAL FAIRNESS, IN K.J. ARROW, A. SEN, AND K. SUZUMURA EDS., HANDBOOK OF SOCIAL CHOICE AND WELFARE, ELSEVIER NORTH-HOLLAND.


5TH MODULE:
ATKINSON A. (1970), ON THE MEASUREMENT OF INCOME INEQUALITY, JOURNAL OF ECONOMIC THEORY, 2(3).

CREEDY, J. (2001), LIFETIME VERSUS ANNUAL INCOME DISTRIBUTION, IN JACQUES SILBER EDS., HANDBOOK OF INCOME INEQUALITY MEASUREMENT, SPRINGER.

KAKWANI, N. (2001), INEQUALITY, WELFARE AND POVERTY: THREE INTERRELATED PHENOMENA, IN JACQUES SILBER EDS., HANDBOOK OF INCOME INEQUALITY MEASUREMENT, SPRINGER.

LAMBERT P.J. (2001), “THE DISTRIBUTION AND REDISTRIBUTION OF INCOME (THIRD EDITION)”, CHAPTERS I-V.

MARSHALL A.W., OLKIN I., AND ARNOLD B.C. (2009), INEQUALITY: THEORY OF MAJORIZATION AND ITS APPLICATIONS (SECOND EDITION), SPRINGER NEW YORK.

MOYES, P. (2001), STOCHASTIC DOMINANCE AND THE LORENZ CURVE, IN JACQUES SILBER EDS., HANDBOOK OF INCOME INEQUALITY MEASUREMENT, SPRINGER.

RAMOS X. AND VAN DE GAER D. (2016), “APPROACHES TO INEQUALITY OF OPPORTUNITY: PRINCIPLES, MEASURES AND EVIDENCES, JOURNAL OF ECONOMIC SURVEYS, 30(5), 855-883.

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