Course taught in English
1. Knowledge and understanding: The course’s goal is to provide students with advanced knowledge and skills on the role of public finance and the effects of taxation in the modern market economies. The course will develop analytical knowledge of the main tools of the public sector’s financial activity, with particular regard to those of public accountancy and national budget, following the most recent theoretical developments and normative provisions.
2. Applying knowledge and understanding: The knowledge of the main tools of the public sector’s activity will enable students to use and interpret the main documents of public finance, while the development of analytical skills on the structure and the implications of the different tax models will allow them to deal with the problems related to economic-managerial decisions, thus taking into account the effects caused by taxation.
3. Making judgements: The acquisition of analytical competences concerning the basic variables and tools of public finance will enable students to autonomously evaluate the fiscal and economic-financial implications of different investment choices, as well as the different economic-managerial phenomena, taking into account also the taxation aspect.
4. Communication skills: The student will develop communication skills and an appropriate technical language, with special regard to the analysis of the macroeconomic and microeconomic context, concerning those variables of public finance which are relevant for corporate finance decisions, so as to be able to convey technically rigorous information to experts and non-experts.
5. Learning skills: Students’ learning skills will be stimulated through a proper interaction and discussion on the general knowledge and skills and on their application to case studies.
Market failures and government intervention. The tools of public finance, the role of the national budget and fiscal policy. The analytical tools of public finance, the role of the budget and fiscal policy. general issues involved in taxation of income from different sources such as labour, risk taking, wealth and business income, including the treatment of corporate income. Analyse both the short- and long-run impacts of the income tax on output, allocation of time, labour supply and investment, and more general on the efficiency of resource use. Discuss the incidence of the labour, risk taking, wealth and business income tax, including its effect on product prices, return to investment, and wages. The tax system in practice: the personal income tax, the value added tax, the taxation of capital and business income. Taxation and regulation of the financial Sector. The course consists of 30 lectures, each lasting 2 hours.
1. J. Gruber, Public Finance and Public Policy. 3rd ed. Worth Publishers, 2009. (Chapters, 1, 2, 18, 19, 20, 21, 22, 23, 24).
2. Hindriks, J., and Myles, G. D. Intermediate public economics. Cambridge: MIT press, 2006. (Chapter, 14 – excluding paragrafs 14.8 and 14.9, Chapter,15 – excluding paragrafs 15.6, 15.7, 15.8, and 15.9).
3. R. de Mooij and G. Nicodème (Eds). Taxation and Regulation of the Financial Sector: MIT Press, 2014. (Chapters, 1, 2, 3, 4, 5, 10, 11, 12, 13).
Other useful readings:
B. Salanie. The Economics of Taxation, Cambridge: MIT Press, 2010.
L. Kaplow. The Theory of Taxation and Public Economics. Princeton University Press, 2008.
RW. Boadway. From optimal tax theory to tax policy: retrospective and prospective views. MIT Press, 2012.
Further readings will be provided during the course and made available via the “Studium” course webpage.: http://studium.unict.it/dokeos/2016/courses/1008338C0/