Elective Course - 3nd Semester (Autumn 2nd year) | Course ID: Α201 | E-Class
According to the curriculum, students must choose two elective courses during the third semester

Lecturer

Basil Dalamagas

Language of instruction

English

Course outline

Taxation of goods

• Ramsey rule (derivation, effects, inverse elasticity rule).
• Extension to many households (optimal tax rule, applications).
• Generalization of production technology.
• Tax-free goods, uniform taxes, production efficiency.

Income taxation

• Mirrlees economy (basic structure, the utility structure).
• Optimal tax function (linear taxation, non-linear taxation, effects on labour supply.
• Extensions (two forms of taxes on labour, income, and goods taxes).

Business taxation

• Taxation of the firm (tax on profits, personal taxes).
• Tax impact (Harberger economy, income effects).
• Taxation and finance (corporate and personal tax systems, finance and investment with certainty, uncertainty)

Bibliography

Textbook

• Myles, G.D. (1997), Public Economics, Cambridge University Press, Cambridge.

Aditional Bibliography

• Allen, F. (1982), Optimal linear income taxation with general equilibrium effects on wages, Journal of Public Economics, 17, 135-143.
• Allingham, M.G. and A. Sandmo (1972), Income tax evasion: a theoretical analysis, Journal of Public Economics, 1, 323-338.
• Andersen, P. (1977), Tax evasion and labour supply, Scandinavian Journal of Economics, 79, 375-383.
• Anderson, R. and J.G. Ballentine (1976), The incidence and excess burden of a profits tax under imperfect competition, Public Finance, 31, 159-176.
• Auerbach, A.J. (1983), Taxation, corporate financial policy and the cost of capital, Journal of Economic Literature, 21, 905-940.
• Becker, W.H., J. Buchner and S. Sleeking (1987), The impact of public transfer expenditures on tax evasion, Journal of Public Economics, 34, 243-252.
• Bergstrom, T.C., I. Blume and H. Varian (1986), On the private provision of public goods, Journal of Public Economics, 29, 25-49.
• Bigelow, J.P. (1993), Inducing efficiency: externalities, missing markets, and the Coase theorem, International Economic Review, 34, 335-346.
• Blundell, R. (1992), Labour supply and taxation: a survey, Fiscal Studies, 13, 15-40.
• Cremer, H. and F. Gahvan (1993), Tax evasion and optimal commodity taxation, Journal of Public Economics, 50, 261-275.
• Landskroner, Y. J. Paroush and I. Swary (1990), Tax evasion and portfolio decisions, Public Finance, 45, 409-422.
• Myles, G.D. (1989), Ramsey tax rules for economies with imperfect competition, Journal of Public Economics, 38, 95-115.
• Myles, G.D. (1995), Imperfect competition and industry-specific input taxes, Public Finance Quarterly, 23, 336-355.
• Ray, R. (1986), Sensitivity of optimal commodity tax rates to alternative demand functional forms, Journal of Public Economics, 31, 253-268.
• Virmani, A. (1989), Indirect tax evasion and production efficiency, Journal of Public Economics, 39, 223-237.
• Yamada, M. (1990), An analysis of optimal taxation and tax evasion, Public Finance, 45, 470-490.

Assessment

By written exams at the end of the semester, or in September.