Economics and Public Finance

Code:

1EC202

Acronym:

EFP

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2018/2019 - 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	342	Bologna Syllabus since 2012	2	-	6	63	162

Teaching language

Portuguese and english

Objectives

In a first part of the course we analyse the intervention of the public sector in the economy; in a second part we concentrate on the finantial aspects of the intervention of the public sector in the economy (state budget and taxes).

Learning outcomes and competences

 

In the course we 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 in what concerns allocation of resources and redistribution of income. The course will contribute for a better understanding of the influence of Public Sector in economic decisions at micro level and a better understanding and 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; Historic evolution of Portuguese Public Finance. Ways of State intervention. Importance of the public sector and its functions. II. The public sector dimension and its growth: Different forms of autonomy; Structure of the public sector in Portugal; Measures of the size of the public sector; Arguments concerning the public sector growth; the public sector growth in Portugal. III. Market failure and the Public Sector intervention in the allocation of economic resources: The efficient allocation of economic resources; Inadequacy of the market solution and the role played by the public sector (public goods; externalities; natural monopoly). IV. Income redistribution: concepts of equity; social welfare functions and redistribution criteria; Different forms of redistribution (cash transfers and in kind transfers); V. The State Budget: definition and functions of the budget; the budgetary rules; budget structure; Design and approval of the State Budget; Execution, control and responsibilities of the budget. VI.Public revenue and taxes. Bibliography: Rosen, Harvey - Public Finance, McGraw-Hill,2008. Other bibliography: Cullis J. and Philip Jones -Microeconomics and the Public Economy: a Defence of Levianthan, Basil Blackwell, 1987. Cullis J. and Philip Jones . Public Finance and Public Choice, McGraw-Hill, 1992.

Mandatory literature

Paulo Trigo Pereira et al.; Economia e Finanças Públicas, Escolar Editora, 2012

Teaching methods and learning activities

We combine theoretical presentations with the analysis of practical problems.

Evaluation Type

Distributed evaluation with 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	63,00
Frequência das aulas	63,00
Trabalho de investigação	10,00
Total:	136,00

Eligibility for exams

Erasmus students take asn exame and write a paper.

Calculation formula of final grade

Final grade = 0,6*exam grade* paper grade

Classification improvement

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