Public economics and finance

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

There is the possibility of performing two types of evaluation:

Proposal 1)

Evaluation with two mandatory components:

i) Classification of a written work, group (maximum three  elements) and its presentation, being necessary to obtain the minimum score of 9.5 values (nine and a half values) – weight in the final evaluation of 50%. The student must choose the theme of the work and mark the date of presentation of the same, with the approval of the respective teacher, in the first three weeks of classes of the semester. The work will have to be defended in the last classes.

ii) Final exam –  will be worth 50% of the final grade (minimum score on the final exam: 7.5 values)

The final score will correspond to the weighted average of components i) and ii) and the score of 10 values is required to obtain approval in the discipline.

Proposal 2)

Evaluation with three mandatory components:

i) Classification of an individual written work and its presentation, being necessary to obtain a minimum score of 9.5 values (nine and a half values) – weight in the final evaluation of 50%. The student must choose the theme of the work and mark the date of presentation of the same, with the approval of the respective teacher, in the first three weeks of classes of the semester.  The work will have to be defended in the last classes.

ii) Classification the four practical exercises (each with a similar weight), which can be performed in groups (maximum three elements), with a weight in the final evaluation of 10%.

iii) Analysis and presentation of four scientific articles (group work with a maximum of three elements) – weight in the final evaluation of 40% (each with a weight of 10%).

The final score will correspond to the weighted average of components i), ii) and iii) , and it is necessary to score 10 values to obtain approval in the discipline.

Understand the economic justifications for the need for state intervention in the economy. Study specific cases of state intervention in the economy. Assess the evolution and recent challenges of state intervention in concrete areas of the Portuguese economy. Study the financing of these interventions. Study the State Budget, from its organization to its approval, as well as the classification of public revenues. Characterization of the Portuguese tax system, contrasting it with international tax systems. Study the impact of European integration on public finances, with particular emphasis on the evolution of public debt in a context where the single monetary policy prevails and in the framework of 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

NAO