Year 2010-11
The economy and public finance (21666)
Qualification: Degree in Political and Administration Sciences
year: 2nd
Term: 1st
Number of ECTS credits: 4 credits
Hours of student dedication: 100 hours
Teaching language: Catalan
1. Introduction to the course
The main objective of the course is to analyse the development of the Spanish economy, the role played by the main economic actors and the current state of the economy. It seeks to provide students with the knowledge and tools to enable them, from a statistical and macroeconomic point of view, to understand and interpret recent data and be able to evaluate the fundamental aspects and problems of our economy and the public sector. The knowledge acquired will be used to comment on the different circumstances and political and economic events that affect the economy on a day to day basis at both national and international level.
In addition to the recent economic evolution, the course analyses the characteristics that define the public sector in Spain. It focuses primarily on revenue policies and the fiscal system. The description of the main contributive elements, the economic effects of each of these and the different fiscal policy reform alternatives, at both the central treasury and decentralised tax agencies. The context and the economic state of Spain's public sector will be studied from the perspective of public sector economy and placed in a comparative context.
This course provides students with applied knowledge on the development and main elements of the Spanish economy and an analysis on the Spanish and European fiscal systems and the economic effect of their revenue policies. It is a compulsory course within the field of public economy and the Spanish economy.
2. Competences to be achieved
· Generic competences:
Interpersonal competences:
G9. Critical and self-critical abilities
Instrumental competences:
G1. Ability to analyse and synthesise.
Systemic competences:
G17. Ability to apply knowledge to practice.
G22. Leadership skills.
· Specific competences:
E13. Recognise the economic dimension and the economic environment of the public sector. This competence will enable students to develop a holistic view of the economy and understand the importance of the public sector's economic dimension of the public sector.
Subject specific knowledge (to know):
The theoretical and practical foundations of economic policy.
The theoretical and practical elements of the public sector's economic dimension.
Generic knowledge (to know how to):
Interpret and critically analyse economic reality.
Evaluate the economic dimension of public policies.
Link the behaviour of public authorities and public actors with economic elements.
3. Contents
The Spanish economic system; productive sectors; the labour market; the financial system; economic fluxes; Spain's integration into the international market; the public sector; public sector budget; the system of income collection and expenditure; the fiscal system.
Course content structure:
1st part: The Spanish Economy
¨ BLOCK 1: The Spanish economic system
n Recent developments in the Spanish economy.
n Main characteristics of Spain's economic growth
n Structural changes
n Spain's current economy
¨ BLOCK 2: Spain's economy as an open economy
n Export balance and adjustment policies.
n Development and function of international trade.
n Economic integration with Europe.
¨ BLOCK 3: The labour market
n The characteristics of Spain's labour market
n Factors that explain Spain's unemployment levels
n Labour market reforms
n Productivity and the factors that determine it.
2nd part: Public finance
¨ BLOCK 4: The public sector in Spain
n Introduction to Spain's public sector: basic elements
n Introduction to the theory of contributions: taxes and the principles of contributing.
n Economic efficiency and tax revenues
¨ BLOCK 5: Spain's fiscal system
¨ Direct taxes
n Income tax (Impost sobre la renta de les Persones físiques: IRPF)
¨ Definition and characteristics
¨ Economic effects of this tax
¨ Recent reforms and alternatives
n Tax on benefits (Impost sobre els benefices)
¨ Justification
¨ Structure
¨ Reforms
¨ Indirect taxes
n Advantages and disadvantages: Direct contributions, selective contributions.
n Tax on sales: Value added tax (Impost sobre el Valor Afegit: IVA).
n Reforms to indirect contributions
¨ Regional (Autonomous Community) and Local finance
¨ Proposals for reform:
n Tax contributions and the environment
n Tax contributions on wealth
4. Assessment
The final evaluation of the course, at the end of term as well as the September sitting, will be based on student participation in the seminars and a final exam. The mark obtained in seminars will account for 40 % of the overall mark while the final exam will account for the remaining 60%. Students must obtain at least a 4 in both seminar and the final exam in order to pass the course.
Seminar participation: seminar preparation, assistance and participation are all fundamental in order to be able to achieve the objectives set. The evaluation of seminars will be carried out according to the following criteria:
Preparation of seminars. This will be done in groups not individually. Each group will be formed of 3 students. Each group must notify the teacher of its members in the first seminar. The groups must remain the same for the whole course.
The following will be assessed: oral presentation of group work, the content of the coursework handed in and individual interventions in debates. Presentations and class interventions will be assessed according to their level of relevance, clarity, and their analytical or explanatory quality.
Each group must hand in, before each seminar, a written document where the group's conclusions are set out in relation to the exercises and questions set for each seminar.
In each seminar, the teacher will randomly choose a spokesperson for each group.
For the presentation of group work, the mark given to the spokesperson will also be the mark that all members of the group will be awarded. Not attending to class and not participating in presenting group work will be awarded a 0.
In the seminars, students must write up a final text providing a synthesis of the arguments and conclusions. This text will not be marked but may be subject to revision in tutorial sessions, should either the teacher or the student request it.
To pass the seminar part of the course, students must have presented their work and participated in the majority of seminars throughout the course.
Final exam (applies to all sittings). The questions will all relate to the contents discussed in lectures, the compulsory readings and in seminars. The final mark of the course will be based on an evaluation of the degree to which each student has met the objectives set and will consist of a multiple choice test and /or the development of reasoned answers to questions on the contents of the course.
5. Bibliography and other resources
5.1. Basic bibliography
Lecciones de economía española / José Luis García Delgado and Rafael Myro, directores ; Carlos M. Fernández-Otheo, Juan Carlos Jiménez, Antoni Garrido. Madrid : Civitas, 2009. 9th ed. [HC385 .L428 2009]
Manual de economía española : teoría y estructura / Fernando Martín Mayoral (coord.) Madrid: Pearson Educación, cop. 2009 [HC385 .M364 2009]
Introducción a la teoría de la Hacienda Pública / Antonio Javier Ramos Llanos Madrid : Universitas, 2007 [HJ1244 .R33 2007]
Curso básico de hacienda pública / Antonio Bustos Gisbert. Madrid : Colex, 2007, 1st ed. [ HJ1241 .B87 2007]
5.2. Other resources
Specific readings for each topic will be made available throughout the course. They will either be to complement specific topics covered in lectures or as complementary material to help in the preparation and development of the seminars.
Such materials will be made available primarily via the Aula Global.
6. Methodology
Classroom based: Lectures, seminars and tutorials
Non-classroom based: individual work, group work and personal study.
The process of teaching-learning for this course will be developed as follows:
Classroom based and as a whole group. Lectures. There will be 7 sessions, one a week. Each will be 2 hour long. The aim of lectures is to provide the main tools needed to understand the Spanish economy and its main elements as well as to explain the basic mechanisms of how the main taxes work and the economic effects associated with them. Students must do the required reading in order to be able to follow and understand the lectures.
Classroom based and divided into sub-groups. Seminars. There will be 3 seminars, each two hour long. Each seminar will focus on only one of the content blocks or complementary blocks.
Guided non-classroom based individual activity: students must do the readings set.
Guided non-classroom based group activity: all the seminars require previous group work which must be carried out as a group and not individually. Each group will comprise of 3 students. The specific instructions for each seminar will set out the exact tasks for each group but will in general include readings, the use and analysis of statistical data and survey responses. Each group must hand in a written report before the seminar where they defend their results and must be prepared to answer any questions from the teacher or other students.
Autonomous, non-classroom based study. Each student has individual responsibility for preparing themselves for the final exam. If a student has honestly followed the course as set out above, he or she should be in position to obtain a good grade.
7. Programme of activities
Week 1: Introduction to the course: motivation, description of contents, methodology and assessment criteria. Lecture: Introduction to the economic system of Spain
Week 2: Lecture: The development of Spain's economy. Characteristics and economic growth. Structural changes.
Preparation for seminar "The Spanish economic system"
Week 3: Lecture: Spain's economy as an open economy.
Seminar "The Spanish economic system"
Week 4: Lecture: Spain's labour market.
Seminar "The Spanish economic system"
Week 5: Lecture: Spain's labour market. The problem of productivity in Spain. Seminar: "Export sector and the labour market"
Week 6: Lecture: Spain's public sector.
Seminar "Export sector and the labour market"
Week 7: Lecture: Spain's fiscal system
Seminar "Spain's public sector and the economic crisis. Spain's current fiscal system"
Week 8: Seminar "Spain's public sector and the economic crisis. Spain's current fiscal system"