Elective Course - 4th Semester (Spring 2nd year) | Course ID: A205 | E-Class
According to the curriculum, students must choose three elective courses during the fourth semester

Lecturer

Basil Dalamagas

Language of instruction

English

Course content

Public goods and externalities:

• Optimal provision (pure public goods, free disposal, congestion).
• Individualized prices and Lindahl equilibrium.
• Financing by taxation (identical consumers, differentiated households).
• Market inefficiency and externalities.
• Coase's theorem (markets for externalities, no markets, bargaining).

Tax evasion:

• Tax evasion as a decision with risk.
• Tax evasion and labour supply.
• Tax evasion and its impact on the supply of public goods.
• Auditing with an independent public revenue authority.
• Corporate tax evasion.
• Optimal taxation with tax evasion.

Debt and taxation:

• The effects of debt.
• Optimal one-off taxation and debt.
• Debt neutrality.
• Income and interest taxation.

Bibliography

Textbook

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

Additional 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

Assessment is based on the grade in the written examinations at the end of the semester or in the September resit examinations.