Study-Unit Description

Study-Unit Description


CODE ECN5103

 
TITLE Economic Principles of Taxation

 
UM LEVEL 05 - Postgraduate Modular Diploma or Degree Course

 
MQF LEVEL 7

 
ECTS CREDITS 5

 
DEPARTMENT Economics

 
DESCRIPTION This study-unit introduces students to a number of key topics in public economics with particular specialization on the economics of taxation. It covers theory and evidence on government taxation policy.

This study-unit is about the study of government revenue raised through taxation. It presents students with the general theory of taxation. It sets out the general principles of taxation examining who bears the burden of taxation and exploring the effects of taxation on economic efficiency. It shows how equity and efficiency considerations may be balanced off against each other. This study-unit also examines one of the most important problems of tax design: how to tax the returns to capital.

Study-unit Aims:

The aim of this study-unit is to provide students with a unifying conceptual framework for examining taxation and to use this framework for analyzing current tax policy and proposals for reform. The focus of this study-unit is on evaluating the impact of taxation on the allocation of resources and the distribution of income.

Learning Outcomes:

1. Knowledge & Understanding
By the end of the study-unit the student will be able to:

i) apply the taxation concepts and theoretical models that form the basis of current research in economics of taxation, including models employed to analyze taxation topics such as optimal taxation among others;
ii) identify the key attributes that a good tax system should have;
iii) explain the various ways in which tax systems affect economic efficiency;
iv) identify the difficulties in determining what is a 'fair' tax system;
v) identify the factors that determine the incidence of taxation;
vi) analyze the determinants of welfare loss from a tax;
vii) explain the empirical issues and policy implications associated with topics related to the economics of taxation;
viii)) summarize and assess recent contributions to the economics of taxation literature.

2. Skills
By the end of the study-unit the student will be able to:

i) analyze and synthesize information relevant to the study-unit;
ii) apply appropriate research methodologies in the construction of a coherent and logical argument;
iii) apply critical analysis to tax-related issues;
iv) evaluate critically and apply appropriate theoretical knowledge and skills;
v) contextualise taxation within its social and economic arenas;
vi) critically appraise taxation theories and practices;
vii) analyse real data in both quantitative and descriptive forms.

Main Text/s and any supplementary readings:

Main Text
- The Economics of Taxation by Bernard Salanie. Publisher: the MIT Press
- The Theory of Taxation and Public Economics by Louis Kaplow. Publisher: Princeton University Press
- Public Finance and Public Policy by Gruber Jonathon. Publisher: Worth Publishers.

Supplementary Readings
- Modelling Fiscal Policy in the European Union by Janusz Kudla; Konrad Walczyk; Robert Kruszewski. Publisher: Peter Lang GmbH, Internationaler Verlag der Wissenschaften
- The Economics of Taxation – The International Library of Critical Writings in Economic series. Edited by James Alm.

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Sept. Asst Session Weighting
Assignment SEM2 Yes 30%
Examination (2 Hours) SEM2 Yes 70%

 
LECTURER/S

 

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit