ADVANCED PUBLIC ECONOMICS

The course analyzes the objectives, the tools, and the limits of redistribution policies. Departing from the classical theory of state intervention grounded on market failures, the course explores the nature and the implications of the economic failures of the State for the analysis of government expenditure, taxation and the sustainability of public finances. The role of taxation and expenditure policies to counter inequality and to complete (insurance) markets is considered, focusing on implications in terms of efficiency. The course also focuses on the effects of such policies in terms integenerational redistribution and fiscal sustainability. In particular, an integrative section of the course covers problems of Public Debt Management and public debt sustainability.

1. Introduction
1.1. Tasks and limits of redistribution policies in the real world
1.2. Foundations: Market failures and State failures
1.3. Introduction to the economic failures of the State
2. Second best redistribution
2.1. Optimal income and commodity taxation
2.2. Public provision of social services
2.3. Taxation and social services, a comprehensive approach
3. Intergenerational redistribution and fiscal sustainability
3.1. Intertemporal fiscal policy: redistribution and efficiency
3.2. Issues in Social Security
3.3. Sustainability of Public Debt

Integrative lectures on Public debt management
I.1. Public debt management: tasks and tools
I.2. Public debt management and the secondary market of sovereign bonds
I.3. Instruction visit of the Italian Treasury and MTS Spa