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A first degree in Economics (with a particular focus on Microeconomics) is necessary. In particular an introductory course in public finance is also necessary (concept of taxation, at least in a competitive market). In the second module the main tool of analysis will be game theory, and the students are suggest to already know the concept of equilibrium in both static and dynamic game. Basic of mathematics is also necessary.


The first part is focused on the concepts of externalities and provision of a public good, in particular on its definition and the instruments an institution may enforce to provide the public good. In the second part optimal taxation (income and commodities) is studied. The last part of the module is focused on the public procurement, theory and practice.


The necessary material is uploaded on the website. The textbooks are the following:
• Intermediate Public Economics (2006). Hindriks & Myles
• Microeconomics and Behavior, Robert H. Frank Gregory, McGraw-Hill Irwin (basics of microeconomics necessary to study the first book on Public Economics)
• Handbook of Procurement. Piga, Dimitri, Spagnolo; Cambridge Press (book for the part of public procurement)
Any other further reading will be available on the website.


Additional materials, such as scholarly articles on particular topics, and lecture slides will be made available on the course page.

Teaching methods

Lessons and practice in class

Exam Rules

The final exam is a three-hour written test consisting of six questions, as follows. Three questions from Module 1 (2 mathematical exercises, similar but easier than those carried out during the course, and the discussion of an article chosen among those presented in class), and three questions from Module 2. Within each question there might be a choice of "sub-questions". To pass the exam it is necessary to obtain a mark of 18 in at least four questions. The mark for the written exam is given by the average mark of the six questions. In each question, the scale of marks goes from 0 to 34, so students can obtain a final mark of 30 even without answering perfectly all the questions.
In addition, students can volunteer to give presentations and have their mark added to the mark of the exam. Each presentation will be given a mark from -2 to +3, which is added to the mark of the first exam session after the course only, and rounded to the nearest integer to determine the final mark of the students. Withdrawals from scheduled presentations will be marked with -2.