Public Finance and Economics

Code:

1GE402

Acronym:

EFP

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2015/2016 - 2S

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

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LGES	10	Bologna Syllabus since 2012	3	-	3	42	81

Teaching language

Portuguese

Objectives

The goal of this course is to provide students with the economic explanation for Public Sector intervention in market economies. At the same time , the course studies thew economic effects of taxation and state subsidies.

Learning outcomes and competences

The goal mof this course is to provide students with a good grasp of the main theoretical aspects as well as of budgetary policy nowadays.

Working method

Presencial

Program

I. Introduction
1. THe economic functions of the State
II. The theories expalining the growth of the State
III. Reasons for State intervention and the alternative mechanisms for the market
1. In the scope of the optimal allocation of economic resources
2. In the scope of income redistribution
IV. Public Choice Theory
1. The agents of the non-economic markets and their goals
2. The decision to vote: the Downs model
3. The economic regulation, pressure groups and the contributions of
i- Olson
ii. Stigler
iii. Peltzman
iv. Becker
4. The Theory of the Bureaucracy ( Bureaucratic economics)
V. Public Sector Financing
1. Taxes and other public revenue sources
2. Tax systems
3. Fiscal income concepts
4. Reasons and problems of fiscal deduction
5. Legal and economic tax incidence
6. Taxation and equity
7. Taxation and efficiency
8. Taxation and individual choices
VI. State Budget

Mandatory literature

Fernandes, Abel L. Costa; A Economia das Finanças Públicas, Almedina, 2010
Fernandes, Abel L. Costa; Economia Pública - Eficiência Económica e Teoria das Escolhas Colectivas, Sílabo, 2ª edição, 2011
República Portuguesa; Constituição da República Portuguesa
República Portuguesa; Lei do Enquadramento Orçamental, última revisão
República Portuguesa; Orçamento do Estado para 2013
República Portuguesa; Relatório que acompanha a proposta de lei do Orçamento do Estado para 2013

Complementary Bibliography

Stiglitz, Joseph E.; Economics of the Public Sector, Norton, 2000
Dafflon, Bernard e Luc Weber; Le Financement du Secteur Public: analyse microéconomique , P.U.F. , 1984
Browning, Edgar e Jaquelene Browning; Public Finance and the Price System
Ulbrich, Holley ; Public Finance in Theory & Practice , Thomson , 2003

Teaching methods and learning activities

Theoritical and applied orientes classes.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	90,00
Participação presencial	10,00
Total:	100,00

Eligibility for exams

Students have toattend at least 75% of the lectured classes in order to assess continuous evaluation. This evaluation consists of 2 tests, each one evaluating different parts of the program. The first test will last 1h30m and it is not required a minimum mark. Before the second test students may choose to submit to the final examination. The second test will take place at the same time of the final examination.
Final examination will fall upon all lectured program and will last 2h 30m

Calculation formula of final grade

Final mark= 0,4x 1st test mark + 0,6x2nd test mark for the continuous evaluation