Economic Policy (2015/2016)

Course code
Eugenio Peluso
Academic sector
Language of instruction
Teaching is organised as follows:
Activity Credits Period Academic staff Timetable
UL1 5 1° periodo di lezioni Eugenio Peluso
UL2 4 1° periodo di lezioni Marcella Veronesi

Lesson timetable

1° periodo di lezioni
Activity Day Time Type Place Note
UL1 Tuesday 4:30 PM - 6:30 PM lesson Lecture Hall Aula Tantini (ex Aula E)  
UL1 Wednesday 2:30 PM - 4:30 PM lesson Lecture Hall F  
UL1 Thursday 4:30 PM - 6:30 PM lesson Lecture Hall G  

Learning outcomes

The course aims to provide students with the fundamental notions about the functioning of markets (micro perspective) and the economic system of a country as a whole (macro perspective).
Starting from the description of the theoretical model of perfect competition, we will analyze the main causes of inefficient markets. Students will be able to distinguish the main causes of "market failures": market power, imperfect information, strategic interaction, the presence of externalities and public goods. We then present the main policies able to restore market efficiency and improve the welfare of individuals.
From the aggregate perspective, we will introduce the basic concepts for the study of macroeconomics: the GDP, aggregate demand, aggregate supply, public debt and the role of the foreign sector, with a particular emphasis on stabilization policies and monetary policy.


First part: Market, efficiency and public policy
1-Consumer choice, individual demand and market demand
2-Profit maximization and cost functions
3-Partial and general equilibrium
4-The theorems of welfare economics
5-Market failures: market power and antitrust policies
6-Externalities, public goods and imperfect information
7-The aggregation of preferences and social welfare

Second part: Macroeconomic policies
1-Definition of the key concepts.
2-Goods and financial markets: The IS-LM model
3-The labor market
4-The model of aggregate demand and supply.
5-The economic policy in closed and open economies.

Assessment methods and criteria

Written exam with open questions and exercises.

Teaching aids
Title Format (Language, Size, Publication date)
PROGRAMMA E TESTI CONSIGLIATI  docxdocx (it, 17 KB, 17/11/15)
PROGRAMMA E TESTI CONSIGLIATI  docxdocx (it, 17 KB, 17/11/15)