Public-sector Economics: Spending is a basic and compulsory subject. It is taught during the second semester of the second course of the Bachelors programme. It is integrated within the second Expenditure Module, named after Fundamentals of Economic Analysis, and it is coordinated with the Public Economics: Revenue subject, which will be taught during the third course of the Bachelors, which is part of the Applied Economics Module.



Public-sector Economics: Spending, is the first approach for students to Public Economics. Public Sectors economic analysis starts from the expenditure side of public intervention, since it represents basic activity of the modern Public Sector in market economies. On the other hand, the revenue side of public intervention, will be examined during the next course, as it is a consequence of it, as revenues are necessary in order to spend.



This subject is structured in three thematic chapters: public sector and budget, efficiency and equity as criteria of public intervention on market economies, and expenditure policies.

Specific and soft skills:

Specific:

1. Carefully analyse economic principles guiding Public Sectors intervention in a market economy and get to know issues that justify it.

2. Identify agents that integrate the Public Sector.

3. Learn about main areas of intervention of public expenditure programmes. Identify economic principles that guide expenditure in each policy area.

4. Look for, identify, systematize, analyse, and summarize information from relevant sources. G004

5. Elaborate reasoned opinions and take decisions on relevant topics with a critical view

6. Develop learning skills to attain a relevant degree of autonomy in students own learning process. G002, G011.

7. Make use of information and communication technologies (IT) in their field of study and professional field. G003.

8. Teamwork skills to work in fields related with expenditure policies as proposed by the professor during the subject. G005.

9. Written and oral communication skills, particularly for elaborating clear and coherent reports. G006.

Content:

Level, structure and evolution of Public Expenditure, Budget, Market Failures, Distributive Justice (Equity), Collective Election, Education, Health, Pensions, Unemployment, Housing, Social Protection.

Objectives:

To explain, an intermediate level of current debates, discussions and issues for the Public Sector, from the expenditure perspective. To analyse fundamentals of public economics and to study main results of the Expenditure Theory, and main expenditure policies of the modern Public Sector.

T1. Introduction to Public Economics

1.1 Public Economics: content, main objectives and approaches

1.2 Public Expenditure levels

T2. Public Sector and Budgets

2.1 Public Sector: activity, agents and measurement

2.2 Public Sector Accounts

2.3 Public Budget

2.4 Budget classification

2.5 Public deficit

T3. The Equity - Efficiency trade-off of public intervention

3.1 Public sector intervention: justification and tools

3.2 Efficiency-led intervention

3.3 Equity-led intervention

T4. Collective election and behaviour of Public Sector

4.1 The problem of collective election

4.2 Election through majority voting systems

4.3 Public Sector behavioural models

T5. Social Expenditure

5.1 Healthcare

5.2 Education: compulsory and tertiary education

5.3 Social Protection policies: unemployment, retirement pension schemes and labour market policies.

5.4 Other social expenditure policies: fight against inequality and poverty and housing policies

In the lecture mode, the professor will give lectures on the conceptual contents of the subject, encouraging the participation of the students.



In the practical classes, questions and problems will be solved in the classroom in a participative way. Problems and exercises will be provided to be developed in class in groups, which will allow them to deepen their theoretical knowledge of the subject. The formulation of questions and open discussion will be encouraged.

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Written test to be taken (%): 60
  • Realization of Practical Work (exercises, cases or problems) (%): 20
  • Exhibition of works, readings ... (%): 20

The subject can be marked in two different ways:



a) Continuous evaluation: the final exam will represent a minimum of the 60% of the final mark. The rest of the up to 40% of the mark will be represented by the activities related to the continuous evaluation.

- To pass the subject when following this evaluation system, a minimum mark of 4 out of 10 in the final exam will be needed, as well as a minimum mark of 5 out of 10 when summing both marks (60%+40%).

- The mark assigned to students who do not fulfill this requirement will be the mark obtained in the final exam (out of 10 points)

b) Final Exam: the final exam represents the 100% of the mark

The re-take will consist on an exam that will represent the 100% of the mark.

Bibliografía básica y complementaria sobre los temas tratados, disponible en Biblioteca.
Colección de Problemas de la asignatura

Basic bibliography

-Albi E., González Páramo J.M. y Zubiri I.: Economía Pública I: Fundamentos. Presupuesto y Gasto. Aspectos Macroeconómicos. Editorial Ariel. Economía, 4ª Edic. Actualizada. 2017

- Problemas de Economía del Sector Público: Gasto. Centro de Publicaciones F.C. Económicas y Empresariales . UPV 2011-2012

In-depth bibliography

-Boadway R.W. y Wildasin D.E. ¿Economía del Sector Público¿ Instituto de Estudios fiscales. 2ª edición. 1986

-Musgrave R. y P. Musgrave., ¿Hacienda Pública: Teórica y Aplicada¿ Editorial McGraw-Hill. 5ª Edición.1992

-Rosen H., ¿Hacienda Pública¿ Editorial McGraw-Hill. 7ª Edición. 2007

-Stiglitz J. ¿La Economía del Sector Público¿ Editorial Antoni Bosch. 2ª Edición 1995

-Lopez Casasnovas, G., et al.: ¿Los nuevos instrumentos de la gestión pública¿. Colección de Estudios Económicos La Caixa (nº 31, 2003)

-San Segundo, M.J. ¿Economía de la Educación¿. Síntesis. Madrid 2001

-¿Dependencia y Familia: una perspectiva socio-económica¿. Colección Estudios, Serie Dependencia nº 12013. Ministerio de Sanidad y Política Social

-¿Informe sobre Sistema Educativo y Capital Humano¿. Consejo Económico y Social. Informe 01/2009

-¿VI Informe sobre exclusion y desarrollo social en España 2008¿. Fundación FOESSA. Capitulo 4: Políticas y bienes sociales procesos de vulnerabilidad y exclusión social

LIBROS DE PROBLEMAS:
-Paniagua F. J. y R. Navarro., ¿Cuestiones y Ejercicios de Hacienda Pública¿ UNED 2002
-Domínguez J. M. y G. Castillo., ¿Ejercicios de Hacienda Pública¿ Editorial Pirámide 1998

Journals

-Hacienda Pública Española / Revista de Economía Pública http://www.ief.es/
-Papeles de Economía Española http://www.funcas.ceca.es/
-Presupuesto y Gasto Público http://www.ief.es/
-Ekonomiaz: Revista Vasca de Economía http://www1.euskadi.net/ekonomiaz/

Web addresses

Nacionales:
-Ministerio de Economía y Hacienda: http://www.meh.es/
-Agencia Tributaria: http://www.aeat.es/
-Boletín Oficial del Estado (BOE): http://www.boe.es/
-Boletín Oficial del País Vasco (BOPV): http://www.euskadi.net/
-Instituto de Estudios Fiscales: http://www.ief.es/
-Diputación Foral de Vizcaya: http://www.bizkaia.net/
-Diputación Foral de Álava: http://www.alava.net/
-Diputación Foral de Guipúzcoa: http://www.gipuzkoa.net/
-Banco de España: http://www.bde.es/
-Seguridad Social: www.seg-social.es
-Ministerio de Trabajo y Asuntos Sociales: www.mtas.es
-INE: http://www.ine.es
-EUSTAT: http://www.eustat.es

Internacionales:
-OCDE: http://www.oecd.org/home/
-EUROSTAT: http://europa.eu.int/comm/eurostat/