Learning objectives

Referring to knowledge Analyse the state as an economic agent and its role in the economy. Understand state interventions aimed at improving social welfare: rationale, efficiency and effectiveness of public intervention (economic policy) in the economy. Understand the technical and institutional limitations of public intervention in the economy. Analyse public choice processes. Referred to skills and abilities Interpret public policies from an economic perspective. Identify market failures and potential governmental intervention measures. Analyse the suitability of specific government interventions according to the type of economic problem involved. Detect limitations on public decision-making in different political and institutional contexts. Determine the influence and impact of pressure groups. Referred to attitudes, values and norms Understand government intervention in the economy as a measure aimed at improving social welfare by ensuring efficient creation and allocation of resources and equitable distribution of these resources. Understand the importance of conceptual rigour and the application of objective criteria in the analysis of economic policy at all levels of government.

 

 

Teaching blocks

 

1. The role of the state in the economy

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1.1. Economic functions of the state: allocation, distribution, stability, growth

1.2. Analysis of the nature of the state and government; rationale of state intervention: what, when and how

1.3. Alternative mechanisms of resource allocation; public and private decisions; goals and incentives of public and private agents

1.4. Interactions in economic policy; multi-level government; factors influencing a global economy

2. Efficiency in resource allocation

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2.1. The concept of efficiency in the allocation of economic resources; welfare economics and Pareto efficiency

2.2. The efficiency frontier; the first and second theorems of welfare economics; second best

2.3. Social welfare functions and the Arrow and Rawls critiques

 

3. Market failure

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3.1. Positive and negative externalities

3.2. Public goods

3.3. Imperfect competition and monopoly

3.4. Distributive inequality

3.5. Innovation; asymmetric information

3.6. Macroeconomic failures: instability of the capitalist market and economic cycles, unemployment, inflation and growth

4. Equity and efficiency

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4.1. Equity–efficiency tradeoff

4.2. Social decision-making

4.3. Measurement of consumer and producer surplus; social surplus

4.4. Principles of compensation

5. Factors influencing public decision-making

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5.1. Normative approaches; the government as a benevolent agent: objectives and tools; Tinbergen’s quantitative model and the Lucas critique

5.2. Government failures; public choice: objectives of politicians and bureaucrats, regulatory capture

5.3. The problems of collective choice; democratic choice and Arrow’s theorem

6. Social calculation and evaluation

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6.1. Cost–benefit analysis of public projects

6.2. Models and techniques for the evaluation of public policies

7. Models of state intervention in the event of market failures

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7.1. Public and mixed provision of public services and merit goods; public companies, private companies and mixed models

7.2. Regulation of the private provision of public goods

7.3. Imperfect competition and information asymmetry

7.4. Regulation of market power and competition policy

7.5. Regulations on externalities management; common goods; environment

7.6. Policies for the activation of production and organisational innovation

7.7. Social inequality; alternative public policies

8. Analysis of specific policies

*  This teaching block covers specific sectors or areas of government action that allow for detailed analysis of the formulation, development and results of economic policies. The aim is to look in greater depth at how the principles of economic policy are applied in a specific area. The sector is chosen by the teacher on the basis of his or her research expertise and the relevance to current developments in the general field of economic policy. Possible areas include policies on efficiency or those focused on social equitable distribution of resources.

Policies on efficiency

• Competition
• Regulation of public services
• Public companies and privatisation
• Regulation of products
• Technological and organisational innovation
• Environmental policies
• Energy policies and natural resources
• Regulation and supervision of financial markets

Policies on equity

• Migratory policy and regulations
• Labour policies and regulations
• Education
• Health
• Social programmes

 

 

Teaching methods and general organization

 

The subject combines face-to-face theory sessions, problem-solving sessions and case studies. Theory sessions are used to explain the general content of the subject and to introduce the formal models that will be used, through examples and with reference to real-life situations. Emphasis is placed on national and international problems of particular contemporary interest.   In keeping with the flexible model outlined in this course plan, the teaching staff provides the specific teaching programmes for each group, which includes the bibliography and a list of compulsory electronic resources. During problem-solving and case study sessions, the lecturer goes through the solutions to problems and exercises completed and submitted in advance by students. The teaching staff prepares and distributes the exercises to students early enough to solve them, and students are expected to answer and deliver exercises to the teaching staff using the Virtual Campus before the established deadline. The teaching staff posts the problems and exercises on the Virtual Campus, indicating the deadlines for the submission of solutions and any other activities students should be required to prepare.   Students must use the Virtual Campus to submit completed exercises and to send any other materials for the activities set by the lecturers.

 

 

Official assessment of learning outcomes

 

Bachelor’s degree subjects have a single assessment period, with the right to repeat assessment. In accordance with the general regulations for official bachelor’s degrees, continuous assessment is the default option for all subjects. For this subject, continuous assessment comprises the following activities: Class attendance and participation in lectures. Completion and submission of problem-solving exercises, case studies and any other activity set by the teaching staff. Students must complete at least 5 activities and none of the activities can count for more than 20% of the final grade. Final examination. The weighting given to each of these activities for the calculation of the final grade is decided by the lecturer responsible for each group and stated in the teaching programme. The final examination can count for up to a maximum of 60% of the final grade. Standard examination dates and repeat assessment dates are shown in the academic calendar. A range of assessment systems and mechanisms may be used, including the following: participation in activities, practical sessions, assignments, tests and examinations, and the compilation of a coursework folder. The lecturers assigned to each group list the assessed exercises and a general assessment schedule in the teaching programme (problem-solving exercises, case studies, text analysis and commentary, coursework folder and any other activity deemed suitable).  Students who fail to pass the continuous assessment are entitled to sit the final examination with no change in the weighting given to the activities/exam in this assessment procedure. Repeat assessment. The assessment procedure and content for repeat assessment are the same as described below for single assessment.   Examination-based assessment Students who cannot meet these requirements, can waive their right to continuous assessment. If the final continuous assessment examination for a subject is set on the same day as the single assessment examination (as scheduled by the Academic Council), the express waiver is not necessary, as the student will sit either the final continuous assessment examination (if eligible for it according to the subject guidelines) or the single assessment examination. In the event that the final continuous assessment examination is held before the date scheduled by the Academic Council for single assessment, students who sit this examination are understood to have renounced the single assessment option. Students who do not take the continuous assessment examination are entered for single assessment. The specific single assessment requirements are listed in the teaching programme by the lecturers assigned to each group. Students may be required to complete an examination and/or present a series of assignments. In some cases, single assessment also takes into account attendance of face-to-face activities such as practical sessions or seminars. This is stated in the teaching programme for each group. The maximum grade available for the subject is the same for continuous assessment and single assessment. Students registered for single assessment are required to demonstrate that they have achieved the same learning outcomes as those registered for continuous assessment. Assessment of students enrolled in the GIE group may be different and is described in the group’s programme.

Reading and study resources

Check availability in Cercabib

Book

GRUBER, Jonathan. Public finance and public policy. 5a ed. New York : Worth Publishers, 2016

Main textbook for English-speaking groups.

Catàleg UB  

STIGLITZ,  Joseph E. La economía del sector público. 4a ed. Barcelona : Bosch, 2016

 

Catàleg UB  

COSTAS, Anton. ; BORRELL, Joan-Ramon. Lecciones de economía del sector público: mercados, gobiernos y políticas. Barcelona : Universitat de Barcelona, 2011

Catàleg UB  

ALBALATE, Daniel.; FAGEDA, Xavier.; FERNÁNDEZ, Laura. Apunts de política econòmica: fonaments i polítiques. Barcelona : Universitat de Barcelona, 2010

Catàleg UB  

ACOCELLA, Nicola. Economic policy in the age of globalisation. Cambridge : Cambridge University Press, 2005

Catàleg UB  

CONNOLLY, Sara.; MUNRO, Alistair.  Economics of the public sector. London : Prentice Hall Europe, 1999

Catàleg UB  

TISDELL, Clement Allan; HARTLEY, Keith. Microeconomic policy : a new perspective. Cheltenham : Edward Elgar, 2008

Catàleg UB