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Free University of Bozen-Bolzano

Economics and Public Policy Design

Semester 2 · 27606 · Master in Public Policy and Innovative Governance · 12CP · EN


M1 - Module M1 "Economics of the Public Sector" introduces the principles of taxation and how governments use taxes to finance services, steer economic behaviour and pursue social objectives—addressing issues of equity, efficiency, incidence, evasion and sustainability. The course examines intended impact¿and possible unintended implications of key tax instruments on households, firms and the wider economy. It builds quantitative and critical thinking skills so students can design, evaluate and communicate evidence based fiscal policies for governments and public administrations.

M2 - Module M2 "Behavioral Economics and Public Policy Design" explores key economic issues related to public service design and implementation. Topics include behavioral economics, choice architecture, nudges, and experimental methods in policy design and evaluation. Students will examine the application of these principles in various policy realms. The course includes case studies, team projects, and discussions to enhance students' analytical and problem-solving skills.

Lecturers: Mirco Tonin, Alexander Moradi

Teaching Hours: 36 (Moradi) + 36 (Tonin)
Lab Hours: -
Mandatory Attendance: Attendance is recommended, but not mandatory.

Course Topics
M1 - Taxation principles; equity and fairness in taxation; taxation and inequality; tax incidence analysis; taxation of consumption, labour and capital; tax evasion and avoidance; taxation for sustainable development. M2 - Behavioral aspects of public service delivery; fundamental concepts and methodologies; practical application of behavioral principles to enhance the efficacy of public services; strategic incorporation of nudges, default settings and deadlines; analysis of specific public policies, from design to implementation challenges with a focus on sustainability.

Teaching format
M1 - Lectures, Projects, Labs. M2 - The course will combine frontal lectures, discussion of case studies and projects. Students will be expected to participate actively in class discussions.

Educational objectives
ILO (Intended Learning Outcomes) Economics and Public Policy Design M1 Economics of the Public Sector ILO1 Knowledge and understanding ILO1.1 The student acquires the knowledge of economic theory necessary to understand and analyse economic and business phenomena in the public sector in order to support decision-making processes. Knowledge of public policy and the tools necessary for the design of sustainable policies will be consolidated. Knowledge related to the labour market, education and health will also be deepened, functional to the development of public policy analysis and evaluation skills. ILO2 Ability to apply knowledge and understanding ILO2.1 ability to interpret market trends through the application of appropriate economic models and implement economic analysis tools, also using data ILO2.2 ability to apply economic models to describe the behaviour of economic agents and develop sustainable economic policies in various application domains of interest to companies and public bodies ILO3 Making judgements ILO3.1 ability to apply acquired knowledge to interpret economic and business phenomena in order to make managerial and operational decisions in the context of public administration ILO3.2 ability to select data and use appropriate information to describe a problem concerning the design, implementation and evaluation of public sector projects and policies, aiming at innovation and improvement of processes, products and results ILO3.3 ability to relate models and empirical evidence in the study of public policy phenomena ILO3.4 ability to reflect, also from the perspective of public ethics and sustainability as regards future generations, on the responsibilities connected with the use of public resources ILO4 Communication skills ILO4.1 ability to communicate effectively in oral and written form the specialised content of individual disciplines, using different registers according to recipients and communicative and didactic purposes, and to evaluate the formative effects of his/her communication ILO5 Learning ability ILO5.1 ability to use information technology autonomously to carry out bibliographical research and investigations and for one's own training and further education. Economics and Public Policy Design M2 Behavioral Economics and Public Policy Design ILO1 Knowledge and Understanding ILO1.1 The student acquires the knowledge of economic theory necessary to understand and analyse economic and business phenomena in the public sector in order to support decision-making processes. Knowledge of public policy and the tools necessary for the design of sustainable policies will be consolidated. Knowledge related to the labour market, education and health will also be deepened, functional to the development of public policy analysis and evaluation skills. ILO2 Ability to apply knowledge and understanding ILO2.1 ability to interpret market trends through the application of appropriate economic models and implement economic analysis tools, also using data ILO2.2 ability to apply economic models to describe the behaviour of economic agents and develop sustainable economic policies in various application domains of interest to companies and public bodies ILO3 Making judgements ILO3.1 ability to apply acquired knowledge to interpret economic and business phenomena in order to make managerial and operational decisions in the context of public administration ILO3.2 ability to select data and use appropriate information to describe a problem concerning the design, implementation and evaluation of public sector projects and policies, aiming at innovation and improvement of processes, products and results ILO3.3 ability to relate models and empirical evidence in the study of public policy phenomena ILO3.4 ability to reflect, also in a perspective of public ethics and sustainability with regard to future generations, on the responsibilities connected to the use of public resources ILO4 Communication skills ILO4.1 ability to communicate effectively in oral and written form the specialised content of individual disciplines, using different registers according to recipients and communicative and didactic purposes, and to evaluate the formative effects of his/her communication ILO5 Learning ability ILO5.1 ability to use information technology autonomously to carry out bibliographical research and investigations and for one's own training and further education.

Assessment
M1 For Attending Students: 1. Presentation (20%): Students are required to present an article to the class. The presentation should summarize the article's aim, methodology, and main findings, and provide a critical assessment (ILO3, ILO4). 2. Project Report (40%): Students must submit a report, not exceeding 1,500 words, that transforms the presentation topic into a structured project format (ILO1, ILO2, ILO3, ILO5). 3. Written exam (40%): This 40-minute exam comprises multiple-choice and short review questions (ILO1, ILO2, ILO3). For Non-Attending students: Written exam (100%): This 60-minute exam comprises multiple choice and short review questions and an essay in which students demonstrate their critical thinking (ILO1, ILO2, ILO3, ILO4, ILO5). M2 For Attending Students: 20% team project presentation (ILO2, ILO3, ILO4), 20% team project report (ILO1, ILO2, ILO3, ILO5), 60% written exam (ILO1, ILO2, ILO3). For Non-Attending Students: 100% written exam. Exam: review questions (ILO1, ILO2, ILO3, ILO4, ILO5) NOTE: Project work and classroom presentations are valid for 1 academic year and cannot be carried over beyond that time-frame. The final grade is established by assigning 50% of the overall assessment to modules M1 and M2, respectively.

Evaluation criteria
Team Project Reports: Depth and accuracy of content. Integration and application of course concepts to the project topic. Originality and creativity in problem-solving and analysis. Clarity, organization, and professionalism of the written report. Team Presentations: Effectiveness of communication and ability to engage the audience. Visual and analytical clarity of presentation materials Responsiveness to questions and ability to discuss the project in depth. Written Exam: Comprehension of course material and key concepts. Ability to apply theoretical knowledge to practical scenarios. Critical thinking and analytical skills in responding to review questions. Quality of written communication, including structure and articulation of arguments.

Required readings

M1

Public Finance and Public Policy, by Jonathan Gruber, 5th edition– Chapters 3, 18-22.

M2

Kahneman, Daniel. "Thinking, fast and slow".



Supplementary readings

M1

Economics articles uploaded on OLE.

M2

Additional material will be distributed in class and published onTEAMS.




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Sustainable Development Goals
This teaching activity contributes to the achievement of the following Sustainable Development Goals.

8 10 12

Modules

Semester 2 · 27606A · Master in Public Policy and Innovative Governance · 6CP · EN

Module A — Economics of the Public Sector

This module "Economics of the Public Sector": a) introduces the principles of taxation and how governments use taxes to finance services, steer economic behaviour and pursue social objectives—addressing issues of equity, efficiency, incidence, evasion and sustainability; b) examines the intended impact¿and possible unintended implications of key tax instruments on households, firms and the wider economy; c) builds quantitative and critical thinking skills so students can design, evaluate and communicate evidence based fiscal policies for governments and public administrations.

Lecturers: Alexander Moradi

Teaching Hours: 36
Lab Hours: -

Course Topics
Principles of Taxation; Taxation and Income Distribution; Tax incidence analysis; Optimal taxation: Consumption, labour and capital; Economics of Pension Systems; Tax evasion and avoidance.

Teaching format
Lectures, Projects, Labs.

Required readings

Public Finance and Public Policy, by Jonathan Gruber, 5th edition – Chapters 3, 18-22.



Supplementary readings

Economics articles uploaded on OLE.



Semester 2 · 27606B · Master in Public Policy and Innovative Governance · 6CP · EN

Module B — Behavioral Economics and Public Policy Design

This module "Behavioral Economics and Public Policy Design" explores key economic issues related to public service design and implementation. Topics include behavioral economics, choice architecture, nudges, and experimental methods in policy design and evaluation. Students will examine the application of these principles in various policy realms. The course includes case studies, team projects, and discussions to enhance students' analytical and problem-solving skills.

Lecturers: Mirco Tonin

Teaching Hours: 36
Lab Hours: -

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