Economics and Public Finance

Code:

1EC202

Acronym:

EFP

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2021/2022 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Bachelor in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LECO	378	Bologna Syllabus since 2012	2	-	6	63	162

Teaching language

Portuguese and english

Objectives

The discipline ensures a compromise between Public Economics and Public Finance. In a first part of the course, the intervention of the public sector in the economy is analyzed; in a second part the focus is on the financial aspects of the intervention of the public sector in the economy (state budget and taxes).

Learning outcomes and competences

 

The course combine  scientific areas of Public Economics and Public Finance. The students with approval in this course will be familiar with the theoretical explanations for the intervention of the Public Sector in the allocation of economic resources and in income redistribution. The institutional dimension of the intervention of the Public Sector in the economy is considered when we study the structure of Public Sector, its size and growth, budgetary procedures and the tax system.

The students will be able to understand and to formulate critical evaluations of public policies concerning  allocation of resources and redistribution of income. The course  contributes to a better understanding of both the influence of Public Sector in economic decisions at micro level and the formulation of macroeconomic policies. The students will learn the fundamental aspects of the budgetary procedures in the Portuguese Public Sector and the Portuguese Tax System.

Working method

Presencial

Program

I. Introduction: Public Economics and Public Finance. Forms of State intervention in the Economy. Theories  of the Public Sector. Functions of the Public Sector. Historic evolution of Portuguese public finance. II. The Public Sector dimension and its growth: Different forms of autonomy. Structure of the public sector in Portugal. Arguments concerning the public sector growth. Measures of the size of the public sector. The public sector growth in Portugal. III. Public Sector intervention in the allocation of economic resources: The efficient allocation of economic resources. Market failures and the role played by the public sector. IV. Income redistribution: Concepts of equity and social welfare functions. Different forms of redistribution. V. The State Budget: definition and functions of the budget.Tthe budgetary rules. The State budget process.  Execution, control and responsibilities of the budget. VI.Public revenue and taxes.

Mandatory literature

Rosen Harvey S.; Public finance. ISBN: 0-07-287648-4
Pereira Paulo Trigo 1959- 070; Economia e finanças públicas. ISBN: 978-972-592-492-1

Complementary Bibliography

Cullis John G.; Public finance and public choice. ISBN: 978-0-19-923478-3
Musgrave Richard A.; Public finance in theory and practice. ISBN: 0-07-044120-0
Cullis John G.; Microeconomics and the public economy. ISBN: 0-631-15552-X
Browning Edgar K.; Public finance and the price system. ISBN: 0-02-315660-0

Teaching methods and learning activities

We combine theoretical presentations with the analysis of practical problems.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	91,50
Frequência das aulas	58,50
Trabalho de investigação	12,00
Total:	162,00

Eligibility for exams

The evaluation of Erasmus students consists of a written exam and a written research paper.

Calculation formula of final grade

Final grade = 60%*exam grade+ 40%* paper grade

Special assessment (TE, DA, ...)

Classification improvement

See rules defined by the Pedagogical Council. Final exam only.