AØKA08185U Tax Policy

Volume 2013/2014
MSc in Economics

The course gives an overview on the basic models used to analyze the efficiency implications and optimal design of tax policy. The course puts emphasis on linking formal analysis to empirical analysis and to discuss implications of theoretical and empirical findings for real world tax policy.
Questions addressed in the course include:

- How do income taxes affect labor supply and savings decisions by households?
- Who bears the burden of consumption and income taxes?
- What is the optimal design of tax-transfer systems?
- How should environmental externalities be treated by the tax system?
- What are the implications of behavioural economics for tax policy?
- How is firm behavior affected by corporate taxes?
- Do firms successfully avoid paying taxes in a global economy?

Learning Outcome
The course makes students familiar with advanced issues in tax policy analysis. Students should in this course acquire skills to evaluate how taxes influence household and firm behavior. Part of these skills consists of being able to communicate verbally and analytically an understanding of the models and their implications for tax policy design. The students will also learn to link theoretical results to empirical analyses and to interpret empirical results given the models which are discussed in the course.

At the end of the course students should be able to formulate their own research questions and to set up models which are appropriate in answering these questions.
To obtain grade 12 the student must demonstrate these skills to perfection.
Curriculum: The book “B. Salanié, The Economics of Taxation, Cambridge: MIT Press, 2003” serves as the main reference for most parts of the course. Research papers as well as lecture notes will complement the book.
Microeconomics at the Master level.
3 hours of lectures per week for 14 weeks.
  • Category
  • Hours
  • Exam
  • 3
  • Lectures
  • 42
  • Preparation
  • 161
  • Total
  • 206
7,5 ECTS
Type of assessment
Written assignment, 3 hours under invigilation
Written, taken place at Peter Bangs Vej 36
Exam registration requirements
Students are asked to give a short overview on a research paper. No written material has to be handed in.
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period
Will be updated before the start of the semester
Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exams with a synopsis to be handed in. This means that the examination date also will change.
Criteria for exam assesment
The Student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.