Public Economics 1

Module title	Public Economics 1
Module code	BEE3047
Academic year	2024/5
Credits	15
Module staff	Professor Christos Kotsogiannis (Lecturer)

Duration: Term	1	2	3
Duration: Weeks		11

Number students taking module (anticipated)	100

Module description

Summary:

The aim of the course is to consider the principles and practice of tax policy. The course is broadly divided into four parts.

Part I presents the starting point of any tax analysis.
Part II discusses direct/indirect taxation addressing such questions as: are there good reasons for taxing goods at different rates?, How progressive should income tax be?
Part III deals with issues of tax evasion addressing key issues in public policies that relate to the optimal fine and the probability of auditing taxpayers. This is a topic of distinct policy concern and has become much more prominent since the crisis as countries struggle to restore public deficits. It will also look at issues like why people evade their tax obligations, what policies should the tax authorities pursue in attempting to enforce compliance, how significant tax evasion is, and how it can be measured.
Part IV addresses questions of international taxation, issues that become increasingly pressing in practice, especially, but not only, following the recent announcement of the U.S. to cut in the U.S corporate tax rate and the fear that this might give rise to international tax competition.

Additional Information:

Internationalisation

Many of the issues discussed in this module are relevant across countries, such as taxation issues, standard theories of different kinds of taxes, and the justifications and implications for taxation.

Employability

You will learn to think like an economist and develop your problem-solving and analytical thinking skills

Module aims - intentions of the module

The module is designed to provide you with an up-to-date understanding of some of the leading tax policy and tax administration issues of the day.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

1. an understanding of why we need a public sector;
2. an understanding of the concept of economic efficiency;
3. an understanding of the difference between economic efficiency and equity objectives of the government;
4. an understanding of the problems in government intervention;
5. an understanding of the design of optimal income redistribution via taxation policies and the inherent trade-off between economic efficiency and equity objectives;
6. an understanding of the monitoring and administrative costs of taxation;
7. an understanding of international aspects of tax policy.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

8. the skill to apply economic analysis to government policies and the public sector more broadly.

ILO: Personal and key skills

On successfully completing the module you will be able to...

9. analytical abilities;
10. the intensive use of strategic reasoning will develop students' ability to think strategically.

Syllabus plan

The following topics will be covered:

The starting point of tax analysis: Introduction and some basic microeconomics
Optimal indirect taxation and the Ramsey problem of commodity taxation
Optimal income taxation
Tax evasion
International taxation

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
27	123	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning and Teaching	22	Lectures
Scheduled Learning and Teaching	5	Tutorials
Guided independent study	123	Private study

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Problem Solving	Problem sets (one set for each tutorial)	1-10	Oral, Web based, Written feedback

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
20	80	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Examination	80	2 hours	1-10	Written feedback
Individual Assignment	20	1,500 words	1-10	Written feedback

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
Examination	Examination (80%)	1-10	Referral/deferral period
Individual Assignment	Individual Assignment (20%)	1-10	Referral/deferral period

Re-assessment notes

Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.

Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%.

Indicative learning resources - Basic reading

Basic reading:

Notes will be circulated.
Excellent treatment of the topics can be found in J. Hindriks and G. Myles, (2006) Intermediate Public Economics, MIT Press.
Detailed list of additional sources will be circulated. A.B., Atkinson and J.E Stiglitz (1980). Lectures on Public Economics, McGraw Hill.
G.D.Myles , (1995) Public Economics , Cambridge: Cambridge University Press

Indicative learning resources - Web based and electronic resources

Journal articles from various e-journals

Key words search

Public sector, public economics, market economy

Credit value	15
Module ECTS	7.5
Module pre-requisites	BEE2038 or BEE2025
Module co-requisites	None
NQF level (module)	6
Available as distance learning?	No
Origin date	01/09/2007
Last revision date	21/01/2024