AØKA08185U Summerschool 2019: Tax Policy
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.
After completing the course, the student should be able to:
Understand the concept of tax incidence including key theoretical predictions as well as common strategies for empirical measurement.
Understand the concept of economic efficiency including theoretical predictions as well as common strategies for empirical measurement.
Be able to account for the concept of tax salience as well as its implications for tax incidence and economic efficiency
Know key facts about commodity taxation in the real world
Understand the economic intuition behind theories of optimal commodity taxation as well as their implications for practical policy making
Be able to account for the concept of self-control problems (including how it can be modelled in economic theory) and its implications for optimal commodity taxation
Know key facts about income taxation in practice
Understand the economic intuition behind theories of optimal income taxation as well as their implications for practical policy making
Know key facts about firm taxation in practice
Understand the economic intuition behind theories of firm taxation as well as their implications for practical policy making
Understand the concept of internationaltax competition including key empirical facts and theoretical predictions
Know key institutional facts about offshore tax evasion
Be able to account for theories of tax evasion and important empirical findings
Derive predictions about tax incidence in simple theoretical models of partial equilibrium and interpret them in a straightforward language
Derive formulas that capture the measurement of of economic efficiency in a simple theoretical framework and interpret them in a straightforward language
Theoretically analyze tax incidence and economic efficiency under the assumption that tax salience is limited
Derive expressions that characterize optimal commodity taxation in the canonical Ramsey model and interpret them in a straightforward language
Derive expressions that characterize optimal commodity taxation in models assuming that some agents have self-control problems and interpret them in a straightforward language
Derive expressions that characterize optimal income taxation at the top and at the bottom of the income distribution as well as in the presence of exogenous tags and interpret them in a straightforward language
Derive expressions that characterize firm responses to dividend taxation under various assumptions about the firms and interpret them in a straightforward language
Derive predictions about corporate taxation under internationaltax competition and interpret them in a straightforward language
Discuss strengths and weaknesses of theoretical models of public finance ina straightforeward language
Discuss strengths and weaknesses of empirical strategies employed to measure key behavioral parameters in public finance
Discuss concrete policy issues using terms and concepts from the theory of taxation ina straightforeward language
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.
Teaching: July 29 to August 9, 10-12 AM and 2-4 PM.
Self study: August the 10th to 16th.
Timetable and venue: (Available from April 2019)
To see the time and location of the lectures please press the link:
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-B5-5F18; [Name of course]”
-Select Report Type: “List – Week Days”
-Select Period: “Efterår/Autumn – Weeks 31-5”
Press: “ View Timetable”
Foreign students not enrolled please find more information at Study Economics.
- 7,5 ECTS
- Type of assessment
- Written examination, 3 hours under invigilationThe exam assignment is given in English and must be answered in English.
- Exam registration requirements
Full participation at the summerschool is mandatory and the student must actively participate in all activities.
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
- Exam period
The written exam takes place at the computers of the university:
16 August 2019
During August the exact time of the exam will be available in Digital Exam.
Note: In special cases, the exam date can be changed to another day and time within the exam period.
The written reexam will take place in the period December 2019 - January 2020
Note: If only a few students have registered the reexam it might change to oral including the date, time and place, which will be informed in KUNet or by the Examination Office.
Criteria for exam assesment
Students are assessed on the extent to which they master the learning outcome for the course.
To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.
- Practical exercises