This course focuses on market failures and inequality issues and analyses the potential role for government interventions to cope with them. Under ideal conditions, competition promotes economic efficiency, leaving little role for the public sector. In some circumstances, however, private markets fail and government intervention to restore efficiency may be desirable. In addition to market failures, government intervention can also be motivated by inequality in the distribution of income, wealth, and opportunities across individuals. Among the main fields of intervention, one of the largest is pensions. In this course, we will analyze in-depth the rationale at the basis of the public intervention in setting and structuring the pension systems. We will focus, in particular, on the Italian pension system and its long transition towards financial sustainability. We also analyze other redistributive measures together with the main fiscal instruments to finance public activity.
- Teacher: Flavia Coda Moscarola