PARETO’S INFLUENCE ON SCHOLARS FROM THE ITALIAN TRADITION IN PUBLIC FINANCE

Abstract

The paper discusses the influence of Pareto’s methodological revolution on the Italian scientific tradition in public finance. To that end, the works of the most celebrated scholars from within the first, second, and final generations of this tradition are reviewed with reference to their reactions to Pareto’s idea of science as logico-experimental activities, and his contributions to the development of marginalism and theoretical sociology. The particular scholars considered across the three generations’ time span include Pantaleoni, De Viti, Barone, Einaudi, Sensini, Griziotti, Borgatta, Murray, and Fasiani. The main original contribution of this paper is the marshaling of evidence in support of the author’s proposition that Fasiani’s research program is characterized by a clearly Paretian mode of enquiry with regard to methodology and the economic investigation of fiscal activities, although the specific influence of Pareto’s sociology on Fasiani’s approach to fiscal studies was relatively modest. It is provisionally concluded that, in taking the best and most relevant of Pareto’s work for fiscal studies, Fasiani’s contributions came to represent the highest point in the evolution of the general theory of public finance in the Italian tradition.