Public economics and finance

Knowledge taught in the field of Microeconomics.

The development of the contents will be carried out based on a theoretical and theoretical-practical approach, either through the presentation or research and synthesis. These approaches will be complemented, from an application perspective, with the resolution of practical cases.

Objectives:

Provide students with concepts, theoretical models and analytical instruments aimed at understanding the activity of the State.

Skills:

Understand economic justifications for the need for State intervention in the economy.

To study the evolution and recent challenges of state intervention in concrete areas of the Portuguese economy.

Characterize the Portuguese tax system, subjecting it to international comparations.

Study the impact of European integration on public finances, with particular emphasis on the evolution of public debt in the context of the single currency and on fiscal harmonisation.

I – Public Finances and the role of the State

1. The relationship between the State and the Economy – historical evolution
2. Public economy and public finances
3. The three major functions of the State

II – Theories and public policies in a context of uncertainty

1. Asymmetric information, private insurance, social security and health
2. Inequality, poverty and social well-being

III – State intervention in Health and Social Security

1. The social security system in Portugal
2. The specificity of the health sector
3. Health financing in Portugal

IV – Public expenditure

1. The importance of public spending
2. Trends in public spending in the European Union
3. The efficiency of public expenditure

IV – Public Revenues and the Tax System

1. Sources of State funding
2. The desirable characteristics of a tax system
3. Efficiency and taxation
4. Equity of a tax system

V– The impact of European integration on Portuguese public finances

1. An overview of fiscal policy
2. Fiscal policy in the European Union
3. The impact of tax harmonisation

There is the possibility of carrying out two types of evaluation:

Proposal 1)

i) Classification of a written paper that must be done individually-weight in the final evaluation of 25%. The student must choose the topic, with the approval of the respective teacher, in the first three weeks of classes of the semester. 

ii) Final exam (Normal season, Appeal season and Special season): 75% of the final mark (minimum mark in final exam: 7.5 points)

The final grade will correspond to the weighted average of components i) and ii), and a mark of 10 is required to pass the course.

Proposal 2).

Assessment with two compulsory components

i) Classification of a written work (25%), which can be carried out in a group (maximum of three members), and respective presentation (25%), being necessary to obtain a minimum mark of 9,5 (nine and a half points)-weight in the final evaluation of 50%. The student must choose the topic of the work and schedule the date of its presentation, with the approval of the respective teacher, in the first three weeks of classes of the semester. The paper will have to be defended in the last lessons of the semester.

ii) Classification of five practical exercises (each with a similar weight), with a weight in the final evaluation of 50%.

The final mark will correspond to the weighted average of components i) and ii), being necessary to get approval in the subject.

NAO