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Mauro Fasiani (28 December 1891 – 2 May 1956) was a distinguished Italian economist, best known for his significant contributions to public finance (known in Italy as Scienza delle Finanze ). He was a prominent figure in the Italian school of public finance, which emphasized the socio-political and institutional context of fiscal phenomena. Fasiani's work is particularly noted for its rigorous analysis of the theory of public goods, fiscal illusion, and the principles of taxation, all synthesized in his magnum opus, Principi di Scienza delle Finanze .

Early Life and Education
Academic Career
Major Contributions to Public Finance 3.1. Scienza delle Finanze and Methodological Approach 3.2. Theory of Public Goods and Indivisible Services 3.3. Fiscal Illusion 3.4. Principles of Taxation and Public Expenditure 3.5. Critique of Marginal Utility in Public Finance
Principi di Scienza delle Finanze
Influence and Legacy
List of Major Works
See Also
References
External Links

Mauro Fasiani was born in Oleggio, in the province of Novara, Italy. He pursued his higher education at the University of Turin, where he was a student of prominent economists such as Luigi Einaudi, who would later become President of Italy. Einaudi's influence, particularly his emphasis on rigorous analysis and the ethical dimensions of economic policy, was significant in shaping Fasiani's intellectual development. He graduated in law in 1914 and subsequently dedicated himself to the study of economics and public finance.

Fasiani embarked on a distinguished academic career, holding professorships at several prestigious Italian universities. He taught at the University of Cagliari, then at the University of Genoa, followed by the University of Trieste. His longest and most influential tenure was as Professor of Public Finance ( Scienza delle Finanze ) at the University of Rome La Sapienza, a position he held from 1936 until his death.

Throughout his career, Fasiani was known for his intellectual rigor, his deep understanding of economic theory, and his ability to integrate economic analysis with legal, political, and social considerations. He was a dedicated teacher and mentor to several generations of Italian economists.

Fasiani's work is central to the Italian tradition of public finance, which, unlike the more narrowly focused Anglo-Saxon approach of the time, viewed public finance as an interdisciplinary field encompassing economic, political, sociological, and legal aspects of state activity.

Fasiani championed a broad and realistic approach to public finance. He believed that understanding fiscal phenomena required more than just abstract economic models; it necessitated an appreciation of the institutional framework, political processes, and social forces that shape government revenue and expenditure decisions. His methodology combined deductive reasoning with careful observation of historical and contemporary fiscal practices.

Divisible vs. Indivisible Services: He distinguished between public services whose benefits could be attributed to specific individuals (divisible) and those whose benefits were general and non-excludable (indivisible).
Financing Indivisible Services: He argued that indivisible services, due to their non-excludable nature and the free-rider problem, could not be financed through voluntary market exchange based on individual benefit. Instead, their provision necessitates coercive taxation. This analysis predates and aligns with some aspects of Paul Samuelson's later formalization of public goods theory.
Collective Choice: He recognized that the decision regarding the level and composition of indivisible public services is inherently a political one, reflecting collective preferences rather than individual market choices.

Fasiani was one of the pioneering economists in developing the concept of fiscal illusion ( illusione finanziaria ). He argued that citizens often have an inaccurate perception of their true tax burden and the benefits they receive from public services. This illusion can arise from:

Complexity of the Tax System: Numerous, often hidden, taxes make it difficult for individuals to assess their total contribution.
Indirect Taxation: Taxes levied on goods and services (e.g., sales taxes, excises) are less visible to the consumer than direct taxes like income tax.
Separation of Payment and Benefit: The temporal and conceptual gap between paying taxes and receiving public services can obscure the link between the two. Fasiani contended that fiscal illusion could lead to an underestimation of the true cost of government, potentially resulting in an over-expansion of the public sector beyond what citizens would choose if they were fully informed. This concept was later influential in public choice theory, particularly in the work of James M. Buchanan.

Fasiani provided a comprehensive analysis of taxation principles:

Ability to Pay vs. Benefit Principle: He explored the theoretical underpinnings and practical implications of both principles. While acknowledging the appeal of the benefit principle for divisible services, he recognized the necessity of the ability-to-pay principle for financing indivisible public goods.
Tax Incidence and Effects: He examined the economic effects of different types of taxes on resource allocation, income distribution, and economic stability.
Public Expenditure: He analyzed the determinants of public expenditure growth and the criteria for evaluating the efficiency and equity of government spending programs.

While well-versed in marginal utility theory, Fasiani was critical of its direct and simplistic application to the problem of allocating the tax burden for indivisible public services. He argued that the coercive nature of taxation and the collective nature of public good provision made it difficult to apply individualistic utility maximization frameworks directly, as one might in private market exchanges. He believed that political and ethical considerations inevitably played a larger role in these collective decisions than pure marginal utility calculations for individual taxpayers.

Fasiani's most important and comprehensive work is "Principi di Scienza delle Finanze" (Principles of Public Finance), first published in 1941, with a second, revised and expanded edition in two volumes appearing in 1951. This treatise became a standard textbook in Italian universities and is considered a classic of public finance literature. In this work, Fasiani systematically presented his theories on:

The nature and scope of public finance.
The theory of public needs and public goods.
The economic effects of taxation and public expenditure.
The principles of tax equity and efficiency.
Fiscal policy and public debt.
The phenomenon of fiscal illusion. The Principi is characterized by its analytical depth, clarity of exposition, and integration of theoretical insights with practical policy considerations.

Mauro Fasiani is regarded as one of the leading figures of the 20th-century Italian school of public finance, alongside economists like Antonio De Viti De Marco, Luigi Einaudi, and Benvenuto Griziotti.
His work on public goods and fiscal illusion significantly influenced subsequent research in these areas, both in Italy and internationally, particularly after his ideas were recognized and built upon by public choice theorists.
His Principi di Scienza delle Finanze remains a landmark text, valued for its comprehensive and nuanced treatment of public finance issues.
He contributed to maintaining a distinct Italian tradition in public finance that emphasized the interplay of economic, political, and social factors, a perspective that has gained renewed appreciation in modern political economy.

Contributo alla teoria della rendita del consumatore (Contribution to the Theory of Consumer Rent, 1925)
Sulla teoria della finanza corporativa (On the Theory of Corporate Finance, 1931)
Elementi per una teoria della politica finanziaria (Elements for a Theory of Financial Policy, 1932)
Lineamenti di economia politica corporativa (Outlines of Corporate Political Economy, 1933)
Saggi di economia e finanza (Essays on Economics and Finance, 1936)
"Principi di Scienza delle Finanze" (Principles of Public Finance, Vol. I, 1941; 2nd revised edition in 2 volumes, 1951)
Numerous articles and essays in academic journals such as Giornale degli Economisti e Annali di Economia and Rivista di Diritto Finanziario e Scienza delle Finanze .

Public finance
Scienza delle Finanze (Italian school of public finance)
Public good
Fiscal illusion
Luigi Einaudi
Antonio De Viti De Marco
Benvenuto Griziotti
James M. Buchanan
Public choice theory

Mauro Fasiani (28 December 1891 – 2 May 1956) was a distinguished Italian economist, best known for his significant contributions to public finance (known in Italy as Scienza delle Finanze ). He was a prominent figure in the Italian school of public finance, which emphasized the socio-political and institutional context of fiscal phenomena. Fasiani's work is particularly noted for its rigorous analysis of the theory of public goods, fiscal illusion, and the principles of taxation, all synthesized in his magnum opus, Principi di Scienza delle Finanze .

Early Life and Education
Academic Career
Major Contributions to Public Finance 3.1. Scienza delle Finanze and Methodological Approach 3.2. Theory of Public Goods and Indivisible Services 3.3. Fiscal Illusion 3.4. Principles of Taxation and Public Expenditure 3.5. Critique of Marginal Utility in Public Finance
Principi di Scienza delle Finanze
Influence and Legacy
List of Major Works
See Also
References
External Links

Mauro Fasiani was born in Oleggio, in the province of Novara, Italy. He pursued his higher education at the University of Turin, where he was a student of prominent economists such as Luigi Einaudi, who would later become President of Italy. Einaudi's influence, particularly his emphasis on rigorous analysis and the ethical dimensions of economic policy, was significant in shaping Fasiani's intellectual development. He graduated in law in 1914 and subsequently dedicated himself to the study of economics and public finance.

Fasiani embarked on a distinguished academic career, holding professorships at several prestigious Italian universities. He taught at the University of Cagliari, then at the University of Genoa, followed by the University of Trieste. His longest and most influential tenure was as Professor of Public Finance ( Scienza delle Finanze ) at the University of Rome La Sapienza, a position he held from 1936 until his death.

Throughout his career, Fasiani was known for his intellectual rigor, his deep understanding of economic theory, and his ability to integrate economic analysis with legal, political, and social considerations. He was a dedicated teacher and mentor to several generations of Italian economists.

Fasiani's work is central to the Italian tradition of public finance, which, unlike the more narrowly focused Anglo-Saxon approach of the time, viewed public finance as an interdisciplinary field encompassing economic, political, sociological, and legal aspects of state activity.

Fasiani championed a broad and realistic approach to public finance. He believed that understanding fiscal phenomena required more than just abstract economic models; it necessitated an appreciation of the institutional framework, political processes, and social forces that shape government revenue and expenditure decisions. His methodology combined deductive reasoning with careful observation of historical and contemporary fiscal practices.

Divisible vs. Indivisible Services: He distinguished between public services whose benefits could be attributed to specific individuals (divisible) and those whose benefits were general and non-excludable (indivisible).
Financing Indivisible Services: He argued that indivisible services, due to their non-excludable nature and the free-rider problem, could not be financed through voluntary market exchange based on individual benefit. Instead, their provision necessitates coercive taxation. This analysis predates and aligns with some aspects of Paul Samuelson's later formalization of public goods theory.
Collective Choice: He recognized that the decision regarding the level and composition of indivisible public services is inherently a political one, reflecting collective preferences rather than individual market choices.

Fasiani was one of the pioneering economists in developing the concept of fiscal illusion ( illusione finanziaria ). He argued that citizens often have an inaccurate perception of their true tax burden and the benefits they receive from public services. This illusion can arise from:

Complexity of the Tax System: Numerous, often hidden, taxes make it difficult for individuals to assess their total contribution.
Indirect Taxation: Taxes levied on goods and services (e.g., sales taxes, excises) are less visible to the consumer than direct taxes like income tax.
Separation of Payment and Benefit: The temporal and conceptual gap between paying taxes and receiving public services can obscure the link between the two. Fasiani contended that fiscal illusion could lead to an underestimation of the true cost of government, potentially resulting in an over-expansion of the public sector beyond what citizens would choose if they were fully informed. This concept was later influential in public choice theory, particularly in the work of James M. Buchanan.

Fasiani provided a comprehensive analysis of taxation principles:

Ability to Pay vs. Benefit Principle: He explored the theoretical underpinnings and practical implications of both principles. While acknowledging the appeal of the benefit principle for divisible services, he recognized the necessity of the ability-to-pay principle for financing indivisible public goods.
Tax Incidence and Effects: He examined the economic effects of different types of taxes on resource allocation, income distribution, and economic stability.
Public Expenditure: He analyzed the determinants of public expenditure growth and the criteria for evaluating the efficiency and equity of government spending programs.

While well-versed in marginal utility theory, Fasiani was critical of its direct and simplistic application to the problem of allocating the tax burden for indivisible public services. He argued that the coercive nature of taxation and the collective nature of public good provision made it difficult to apply individualistic utility maximization frameworks directly, as one might in private market exchanges. He believed that political and ethical considerations inevitably played a larger role in these collective decisions than pure marginal utility calculations for individual taxpayers.

Fasiani's most important and comprehensive work is "Principi di Scienza delle Finanze" (Principles of Public Finance), first published in 1941, with a second, revised and expanded edition in two volumes appearing in 1951. This treatise became a standard textbook in Italian universities and is considered a classic of public finance literature. In this work, Fasiani systematically presented his theories on:

The nature and scope of public finance.
The theory of public needs and public goods.
The economic effects of taxation and public expenditure.
The principles of tax equity and efficiency.
Fiscal policy and public debt.
The phenomenon of fiscal illusion. The Principi is characterized by its analytical depth, clarity of exposition, and integration of theoretical insights with practical policy considerations.

Mauro Fasiani is regarded as one of the leading figures of the 20th-century Italian school of public finance, alongside economists like Antonio De Viti De Marco, Luigi Einaudi, and Benvenuto Griziotti.
His work on public goods and fiscal illusion significantly influenced subsequent research in these areas, both in Italy and internationally, particularly after his ideas were recognized and built upon by public choice theorists.
His Principi di Scienza delle Finanze remains a landmark text, valued for its comprehensive and nuanced treatment of public finance issues.
He contributed to maintaining a distinct Italian tradition in public finance that emphasized the interplay of economic, political, and social factors, a perspective that has gained renewed appreciation in modern political economy.

Contributo alla teoria della rendita del consumatore (Contribution to the Theory of Consumer Rent, 1925)
Sulla teoria della finanza corporativa (On the Theory of Corporate Finance, 1931)
Elementi per una teoria della politica finanziaria (Elements for a Theory of Financial Policy, 1932)
Lineamenti di economia politica corporativa (Outlines of Corporate Political Economy, 1933)
Saggi di economia e finanza (Essays on Economics and Finance, 1936)
"Principi di Scienza delle Finanze" (Principles of Public Finance, Vol. I, 1941; 2nd revised edition in 2 volumes, 1951)
Numerous articles and essays in academic journals such as Giornale degli Economisti e Annali di Economia and Rivista di Diritto Finanziario e Scienza delle Finanze .

Public finance
Scienza delle Finanze (Italian school of public finance)
Public good
Fiscal illusion
Luigi Einaudi
Antonio De Viti De Marco
Benvenuto Griziotti
James M. Buchanan
Public choice theory

Mauro Fasiani (28 December 1891 – 2 May 1956) was a distinguished Italian economist, best known for his significant contributions to public finance (known in Italy as Scienza delle Finanze ). He was a prominent figure in the Italian school of public finance, which emphasized the socio-political and institutional context of fiscal phenomena. Fasiani's work is particularly noted for its rigorous analysis of the theory of public goods, fiscal illusion, and the principles of taxation, all synthesized in his magnum opus, Principi di Scienza delle Finanze .

Early Life and Education
Academic Career
Major Contributions to Public Finance 3.1. Scienza delle Finanze and Methodological Approach 3.2. Theory of Public Goods and Indivisible Services 3.3. Fiscal Illusion 3.4. Principles of Taxation and Public Expenditure 3.5. Critique of Marginal Utility in Public Finance
Principi di Scienza delle Finanze
Influence and Legacy
List of Major Works
See Also
References
External Links

Mauro Fasiani was born in Oleggio, in the province of Novara, Italy. He pursued his higher education at the University of Turin, where he was a student of prominent economists such as Luigi Einaudi, who would later become President of Italy. Einaudi's influence, particularly his emphasis on rigorous analysis and the ethical dimensions of economic policy, was significant in shaping Fasiani's intellectual development. He graduated in law in 1914 and subsequently dedicated himself to the study of economics and public finance.

Fasiani embarked on a distinguished academic career, holding professorships at several prestigious Italian universities. He taught at the University of Cagliari, then at the University of Genoa, followed by the University of Trieste. His longest and most influential tenure was as Professor of Public Finance ( Scienza delle Finanze ) at the University of Rome La Sapienza, a position he held from 1936 until his death.

Throughout his career, Fasiani was known for his intellectual rigor, his deep understanding of economic theory, and his ability to integrate economic analysis with legal, political, and social considerations. He was a dedicated teacher and mentor to several generations of Italian economists.

Fasiani's work is central to the Italian tradition of public finance, which, unlike the more narrowly focused Anglo-Saxon approach of the time, viewed public finance as an interdisciplinary field encompassing economic, political, sociological, and legal aspects of state activity.

Fasiani championed a broad and realistic approach to public finance. He believed that understanding fiscal phenomena required more than just abstract economic models; it necessitated an appreciation of the institutional framework, political processes, and social forces that shape government revenue and expenditure decisions. His methodology combined deductive reasoning with careful observation of historical and contemporary fiscal practices.

Divisible vs. Indivisible Services: He distinguished between public services whose benefits could be attributed to specific individuals (divisible) and those whose benefits were general and non-excludable (indivisible).
Financing Indivisible Services: He argued that indivisible services, due to their non-excludable nature and the free-rider problem, could not be financed through voluntary market exchange based on individual benefit. Instead, their provision necessitates coercive taxation. This analysis predates and aligns with some aspects of Paul Samuelson's later formalization of public goods theory.
Collective Choice: He recognized that the decision regarding the level and composition of indivisible public services is inherently a political one, reflecting collective preferences rather than individual market choices.

Fasiani was one of the pioneering economists in developing the concept of fiscal illusion ( illusione finanziaria ). He argued that citizens often have an inaccurate perception of their true tax burden and the benefits they receive from public services. This illusion can arise from:

Complexity of the Tax System: Numerous, often hidden, taxes make it difficult for individuals to assess their total contribution.
Indirect Taxation: Taxes levied on goods and services (e.g., sales taxes, excises) are less visible to the consumer than direct taxes like income tax.
Separation of Payment and Benefit: The temporal and conceptual gap between paying taxes and receiving public services can obscure the link between the two. Fasiani contended that fiscal illusion could lead to an underestimation of the true cost of government, potentially resulting in an over-expansion of the public sector beyond what citizens would choose if they were fully informed. This concept was later influential in public choice theory, particularly in the work of James M. Buchanan.

Fasiani provided a comprehensive analysis of taxation principles:

Ability to Pay vs. Benefit Principle: He explored the theoretical underpinnings and practical implications of both principles. While acknowledging the appeal of the benefit principle for divisible services, he recognized the necessity of the ability-to-pay principle for financing indivisible public goods.
Tax Incidence and Effects: He examined the economic effects of different types of taxes on resource allocation, income distribution, and economic stability.
Public Expenditure: He analyzed the determinants of public expenditure growth and the criteria for evaluating the efficiency and equity of government spending programs.

While well-versed in marginal utility theory, Fasiani was critical of its direct and simplistic application to the problem of allocating the tax burden for indivisible public services. He argued that the coercive nature of taxation and the collective nature of public good provision made it difficult to apply individualistic utility maximization frameworks directly, as one might in private market exchanges. He believed that political and ethical considerations inevitably played a larger role in these collective decisions than pure marginal utility calculations for individual taxpayers.

Fasiani's most important and comprehensive work is "Principi di Scienza delle Finanze" (Principles of Public Finance), first published in 1941, with a second, revised and expanded edition in two volumes appearing in 1951. This treatise became a standard textbook in Italian universities and is considered a classic of public finance literature. In this work, Fasiani systematically presented his theories on:

The nature and scope of public finance.
The theory of public needs and public goods.
The economic effects of taxation and public expenditure.
The principles of tax equity and efficiency.
Fiscal policy and public debt.
The phenomenon of fiscal illusion. The Principi is characterized by its analytical depth, clarity of exposition, and integration of theoretical insights with practical policy considerations.

Mauro Fasiani is regarded as one of the leading figures of the 20th-century Italian school of public finance, alongside economists like Antonio De Viti De Marco, Luigi Einaudi, and Benvenuto Griziotti.
His work on public goods and fiscal illusion significantly influenced subsequent research in these areas, both in Italy and internationally, particularly after his ideas were recognized and built upon by public choice theorists.
His Principi di Scienza delle Finanze remains a landmark text, valued for its comprehensive and nuanced treatment of public finance issues.
He contributed to maintaining a distinct Italian tradition in public finance that emphasized the interplay of economic, political, and social factors, a perspective that has gained renewed appreciation in modern political economy.

Contributo alla teoria della rendita del consumatore (Contribution to the Theory of Consumer Rent, 1925)
Sulla teoria della finanza corporativa (On the Theory of Corporate Finance, 1931)
Elementi per una teoria della politica finanziaria (Elements for a Theory of Financial Policy, 1932)
Lineamenti di economia politica corporativa (Outlines of Corporate Political Economy, 1933)
Saggi di economia e finanza (Essays on Economics and Finance, 1936)
"Principi di Scienza delle Finanze" (Principles of Public Finance, Vol. I, 1941; 2nd revised edition in 2 volumes, 1951)
Numerous articles and essays in academic journals such as Giornale degli Economisti e Annali di Economia and Rivista di Diritto Finanziario e Scienza delle Finanze .

Public finance
Scienza delle Finanze (Italian school of public finance)
Public good
Fiscal illusion
Luigi Einaudi
Antonio De Viti De Marco
Benvenuto Griziotti
James M. Buchanan
Public choice theory