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

NAO

Stiglitz, J. E. (2015). “Economics of the Public Sector”, 4th Edition, W.W. Norton & Co.: New York/London.

Santos, José Carlos Gomes, Arcanjo, Manuela, Afonso, António, Pereira, Paulo Trigo (2016), “Economia e Finanças Públicas”, 5ª edição, Escolar Editora.

Frank, R. H. (2021) “Microeconomics and Behavior”, McGraw-Hill, 10th ed.

Santos, J.A. (2013), “Teoria Fiscal”, Instituto Superior de Ciências Sociais e Políticas, UL, 2ª. edição, Lisboa (519 p.)

Barr, Nicholas (2020), “Economics of the Welfare State”, 6th edition, Oxford University Press.

Jonathan Gruber, Public Finance and Public Policy, Fourth Edition, 2019 Worth Publishers.

Relatórios do Banco de Portugal, capítulos sobre Finanças Públicas

Complementary Bibliography

Franco, A. L. Sousa (1996), “Finanças Públicas e Direito Financeiro”, Almedina, Coimbra.

Ribeiro, J. J. Teixeira (1996), “Lições de Finanças Públicas”, Coimbra Editora.

Reinhart, C. M., Rogoff, K. S. (2011), “From financial crash to debt crisis”, American Economic Review, 101(5): 1676-1706.

Chang, Ha Joon (2002), Breaking the mould: an institutionalist political economy alternative to the neo liberal theory of the market and the state, Cambridge Journal of Economics, 26: 539-559.

Textos diversos distribuídos pela docente.