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Economic Policy and the Economics of the Public Sector

Code: 101084
Credits: 6
2026/2027
Degree programme Type Course
Political Science and Public Management OB 3

Contact lecturer

Name :
Pedro Luís Marques Correia Da Silva
Email :
pedroluis.silva@uab.cat

Group languages

You can consult this information at the end of the document.

Prerequisites

Having passed a basic Economics course, and particularly, having a basic training in microeconomics, is a prerequisite to register for this course. It is also highly advisable to have attended the "Propedeutic Course on Quantitative Methods”.

 

Objectives

- Learning the foundations of public intervention.

- Relating public intervention to voting mechanisms and decision-making in the public sector.

- Approaching the economic theory of democracy and the economic theory of bureaucracy.

- Achieving a theoretical knowledge of economic behaviour, incentives and institutions giving rise to some collective outcomes.

- Achieving a theoretical knowledge of public finance and income redistribution.

- Accessing the relevant information on goals and instruments of economic policy and public sector economics.

- Obtaining and applying the terminology and specific techniques of analysis in economic policy and public sector economics.

- Appraising social policies (social security, health, education, demographic policy and migration)

Learning outcomes

  1. Working in teams and networking, particularly in interdisciplinary conditions.
  2. Synthesizing and critically analysing information.
  3. Arguing from different theoretical perspectives.
  4. Demonstrating good writing skills in different contexts.
  5. Showing a good capacity for transmitting information, distinguishing key messages for their different recipients.
  6. Working autonomously.
  7. Critically arguing the operations of the institutions and economic actors.
  8. Diagnosing specific situations and economic problems.
  9. Reflecting on the proposals of current economic policies, in several fields (financial, fiscal, incomes policy, etc.) and several territories (World, Europe, Spain).
  10. Analysing and explaining the economic dimensions behind public policies.
  11. Critically analysing the impacts of reinforcement policies and subsidies.
  12. Efficiently describing forms of public intervention concerning the economic system.
  13. Assessing the role of the public sector as an economic agent.
  14. Explaining the consequences of a fiscal reform and changes on the government's tax issues.
  15. Describing the ecological taxation and its relationship with the principle of sustainability.
  16. Explaining political principles and impact of (distributive and redistributive) tax policies on economic inequality and social equity.
  17. Describing the stages of the Spanish post-1960 economic development.
  18. Specifying the roles, dimensions and structure of the public sector in the economy.
  19. Analysing the management of human resources, the dynamics and sectoral structure of active population and the functioning of labour market.
  20. Describing the central elements of the Spanish production structure: the agricultural, industrial, and service sectors.
  21. Describing the Spanish foreign sector: the dynamics of import/export, foreign investments in Spain and Spanish investments abroad.
  22. Explaining the main characteristics of the economic policies of western governments.
  23. Critically assessing the options in the economic policies taken by the Spanish governments since the Transition.

Contents

The analytical framework of economic policy and public sector theory is developed with an emphasis on government intervention to address market failures, followed by a critical discussion of the policies implemented and the potential inefficiencies arising from public sector involvement.


 


Topics:


 1. The Formation of Economic Policy


Introduction to the basic conceptual framework, including policy objectives, instruments, and strategies.


 2. Welfare Economics and the Role of the Public Sector


Examination of efficiency and equity, and the fundamental theorems of welfare economics.


 3. Market Failures and Economic Policy


Analysis of market failures and the rationale for government intervention, with a discussion of key theories and approaches to public policy.


 4. Income Distribution


Overview of competing theories on optimal income distribution and an exploration of the trade-offs between equity, efficiency, and incentives in redistribution.


 5. Decision-Making Rules


Exploration of collective decision-making frameworks: unanimity and majority rules, Arrow’s impossibility theorem, the median voter theorem, and conditions for political equilibrium.


 6. Social Policy Analysis


Evaluation of key areas such as social security systems, minimum income programs, health economics, and education economics.


 7. Public Sector Revenue and Taxation


Introduction to public revenue sources and tax policy, including desirable characteristics of tax systems—progressiveness, regressivity, and proportionality.

Learning activities and methodology

Title Hours ECTS Learning outcomes
Tutorials 7.5 0.3 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23
Study, preparation and other activities 90 3.6 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23
Case studies 15 0.6 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23
Lectures 30 1.2 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23

Theoretical lectures will focus on the more important issues in each topic, referring to the relevant references in aspects not requiring their development in class.

The objective of practical classes is that of applying the issues discussed in theoretical lectures to the situation in different countries or regions. Practical classes will be developed with working groups.

Annotation: within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Assessment

Continuous assessment activities

Title Weight Hours ECTS Learning outcomes
Two written exams and one case studies 35%, 35%, 30% 7.5 0.3 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23

CONTINUOUS ASSESSMENT

Evaluation of the course will be on a continuous assessment basis with the following criteria:

  1. Two written exams, to be carried out on established dates, with weighs 35% each.
  2. One case study, to be delivered on established dates, with weighs 30%.

In case plagiarism is detected, the grade assigned to the activity will be 0.

The instructor will set the dates along the first week of the course. Students will strictly respect the above-mentioned dates. Otherwise, they will not be evaluated.

To pass the subject the following conditions must be met:

  • Students must have taken the two written exams, and have obtained an average grade of 3.5 or above.
  • The average grade of the whole set of evaluation activities must be 5.0 or above.

Those students who participate in 1 or less evaluation activities will be qualified as \"Non assessable\"

Grade revision process

After all grading activities have ended, students will be informed of the date and the way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.

Retake process

According to the article 112.3 of the UAB Academic Regulations, those students who fail the subject can retake it in a unique exam, in the date scheduled by the Faculty, if they have participated at least in 2/3 of the evaluation activities obtaining a grade of 3.5 or above.


UNIQUE ASSESSMENT

Students who opt for this assessment modality must:

  1. Submit a written work on one of the topics of the course contents (15% of the final grade). The detailed description of the content and the formal aspects of said work will be announced on the virtual campus at the beginning of the course. The date of presentation of the workis the same as the official one established by the faculty for the final exam.
  2. Make an oral presentation, lasting 10 minutes, of the work detailed in 1) (15% of the final grade). Said presentation will be made on the same date established by the Faculty for the final exam, and once the exam described in section 3).
  3. Take an exam in which theoretical and practical knowledge, and analytical capacity of the different concepts worked during the course must be demonstrated (70% of the final grade). Said exam will take place on the official date established by the Faculty.


Grade revision process

The final grade revision will follow the same procedure as in the case of continuous assessment.

Retake process

The same system established for continuous assessment will be applied.


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For this course, any irregularity committed in an assessment activity (academic fraud, plagiarism, or improper use of AI, unless such use is expressly authorized in the course guide) that could lead to a significant variation in the grade will result in that assessment being graded with a 0. If the course guide stipulates that obtaining a minimum grade in that assessment activity is an essential requirement for passing the course, or if multiple irregularities occur in the assessment activities of the same course, the final grade for that course will be 0. In addition, disciplinary proceedings may be initiated against any student who commits such irregularities. Faculty reserve the right to conduct oral interviews or an alternative test in order to verify the effective acquisition of knowledge and competencies, and thus the validity of the assessments carried out by students.

Bibliography

Basic references:

Rosen, H. and T. Gayer, 2014. Public Finance. McGraw-Hill.

Sanchez Andres, A. 2021. Introducció a la Política Económica. Available on-line for UAB users: https://bibcercador.uab.cat/permalink/34CSUC_UAB/1eqfv2p/alma991000847739706709

Stiglitz, J. and Rosengard, 2016. Economics of the publlic sector. Norton & Company.

 

Other references:

Friedman and Friedman. 1980. Free to Choose. Harcourt.

Harvey, D. 2005. A Brief History of Neoliberalism. Oxford University Press.

Madden and Marcuse. 2016. In Defense of Housing. Verso

Harvey, D. 2010. A Companion to Marx’s Capital. Verso

McConnell, Brue and Macpherson. 2017. Contemporary Labor Economics. McGraw-Hill.

Graeber, D. 2018. Bullshit jobs. Simon & Schuster.

Federici. 2012. Revolution at Point Zero. Housework, Reproduction and Feminist Struggle. PM Press.

Piketty. 2014. Capital in the XXIst Century. Harvard University Press.

Zucman. 2015. The Hidden Wealth of Nations. The University of Chicago Press.

Samuelson and Nordhaus. 2010. Economics. McGraw-Hill.

Skidelsky. 2018. Money and Government. Yale University Press.

Mazzucato. 2014. The Entrepreneurial State. Anthem Press.

Rodrik. 2012. The Globalization Paradox. Oxford University Press.

Kindleberger. 2005. Manias, Panics and Crashes. John Wiley & Sons.

Stiglitz. 2016. The Euro. Norton & Company.

 

Software

No specific software is used, beyond a word processor and basic spreadsheets.

Course groups and languages

The information provided is provisional until November 30. After this date, you will be able to consult the language of each group through this link. To access the information, you will need to enter the course CODE

Type of teaching Group Language Semester Shift
(TE) Theory 1 Spanish second semester morning-mixed
(SEM) Seminars 1 Spanish second semester morning-mixed
(TE) Theory 51 English second semester afternoon
(SEM) Seminars 51 English second semester afternoon