Public economics and finance

Recommended background knowledge:

CB1: Introductory knowledge of microeconomics and macroeconomics.

CB2: Ability to interpret statistical data, economic indicators, graphs and tables.

ME1. Interactive lectures: Presentation of the main concepts using examples, questions and data analysis, contributing to LO1, LO2 and LO3.

ME2. Practical case analysis: Application of knowledge to situations related to government intervention, taxation and budgetary policy, in alignment with LO2, LO3 and LO4.

ME3. Research and synthesis assignments: Individual or group assignments aimed at promoting autonomy, analytical skills and collaborative learning.

ME4. Tutorial guidance: Small-group monitoring and feedback sessions designed to support the progress of assignments and clarify doubts.

Upon completion of this curricular unit, students should be able to:

LO1: Understand the main concepts related to economics and public finance.

LO2: Analyse the foundations, functions and main instruments of government intervention in the economy.

LO3: Understand the structure and evolution of public revenue, public expenditure and the State Budget.

LO4: Assess the effects of budgetary and fiscal policies on economic activity, income distribution and social welfare.

Associated competencies:

C1: Understand the economic foundations that justify government intervention in the economy.

C2: Analyse the evolution and recent challenges of government intervention in specific areas of the Portuguese economy.

C3: Characterise the Portuguese tax system and compare it with the tax systems of other countries.

P1 – Public Finance and the Role of the State

1.1. The relationship between the State and the economy: historical evolution

1.2. Public economics and public finance

1.3. The three main functions of the State

P2 – Public Theories and Policies in a Context of Uncertainty

2.1. Asymmetric information, private insurance, social security and healthcare

2.2. Inequality, poverty and social welfare

P3 – State Intervention in Healthcare and Social Security

3.1. The social security system in Portugal

3.2. The specific characteristics of the healthcare sector

3.3. Healthcare financing in Portugal

P4 – Public Expenditure

4.1. The importance of public expenditure

4.2. Public expenditure trends in the European Union

4.3. The efficiency of public expenditure

P5 – Public Revenue and the Tax System

5.1. Sources of government funding

5.2. Desirable characteristics of a tax system

5.3. Efficiency and taxation

5.4. Equity in a tax system

P6 – The Impact of European Integration on Portuguese Public Finances

6.1. An overview of budgetary policy

6.2. Budgetary policy in the European Union

6.3. The impact of tax harmonisation

Students may choose between two assessment schemes: continuous/periodic assessment or assessment by examination.

A) Continuous/periodic assessment

AM1. Written group assignment and oral presentation (100%)

Students must complete a group assignment and present and defend it orally during class. Both the written component and the oral presentation are compulsory. The minimum passing grade is 10 out of 20.

Guidelines on the use of Artificial Intelligence: Artificial Intelligence tools may be used to the organisation of ideas and text revision. Their use must be declared, specifying the tools used and how they contributed to the assignment. Students remain responsible for the analysis, interpretation and final written work. The use of AI is not permitted during the oral presentation and defence.

Final grade formula:

FG = AM1

B) Assessment by examination

AM2. Individual final examination (100%)

Students must complete an individual written examination covering all the syllabus content of the curricular unit. The minimum passing grade is 10 out of 20.

Final grade formula:

FG = AM2

Students who do not pass the continuous/periodic assessment may take the final examination during the examination periods established in the academic regulations.

Attendance requirements and working students

Class attendance is recommended but not compulsory. Attendance is compulsory for the oral presentation and defence of the assignment.

Examination periods and grade improvement

During the resit, special and grade-improvement examination periods, assessment consists of an individual final examination weighted at 100%.

For grade improvement purposes, the grade obtained in the assignment completed during the semester is not retained. The final grade corresponds to the grade obtained in the grade-improvement examination, in accordance with the applicable academic regulations.

Procedure in cases of suspected fraud

Where there are reasonable grounds to suspect fraud during the assessment marking process, the student will be required to take an oral examination to verify the knowledge and competencies demonstrated. This verification will be conducted by a panel consisting of the lecturer responsible for the curricular unit and two other lecturers from the same academic field. Should the student fail to demonstrate the knowledge and competencies evidenced in the written assessment, the assessment will be annulled.

NAO