ECON4620 ¨C Public Economics - Taxation

Course content

This course is equivalent with ECON3620 ¨C Public Economics - Taxation

The main objective of the course is to discuss the use of taxes and public expenditures for promoting socially efficient resource allocation and a desirable income distribution. The analysis of tax policy will highlight on the one hand harmful market effects of taxes and on the other hand the role of taxes in supporting public provision of goods and services. The course covers tax incidence and efficiency cost of taxation, optimal taxation, income and firm taxation and taxing wealth.

Learning outcome

You should know

• central concepts and basic models of modern public economics based on second best welfare theory
• major actual policies and examples of issues currently on the political agenda
• key concepts characterising types, properties, and effects of taxes and describing publicly provided goods, market imperfections, and second best constraints?
• key models such as the Mirrlees model of taxation

Skills

You should be able to

• explain the economic contents and trade-offs captured by the models
• discuss the assumptions, relevance, and limitations of different empirical methods
• identify and analyse policy problems in public economics
• assess arguments appearing in the policy debate

Competence

You should

• be able to read and understand project reports and journa