The subject "Economics of the Public Sector: Revenues" is a compulsory core course in the third year of the Bachelor's Degree in Economics. It is located in the Module Applications in Economics.



In this subject, students are introduced to the income side of the Public Sector, especially to Tax Analysis, studying the fundamental tax principles to be taken into account when designing and/or reforming current tax systems, together with the knowledge of the main characteristics of the Spanish Tax System.



In order to develop this subject it may be helpful to have basic knowledge in microeconomic theory.

SPECIFIC and TRANSVERSAL SKILLS:



a) SPECIFIC SKILLS:

1. Reflect rigorously on the fundamental tax principles that should guide the design and/or reform of current tax systems to judge the desirability of taxes and coherently define the elements of current taxes.



2. Identify who effectively bears the excess burden in the context of tax incidence models to find out whether or not there has been a transfer of the tax



3. Discern with economic arguments between the different sources of government financing based on fundamental tax principles



b) TRANSVERSAL SKILLS of the Grade:

4. Know how to search, identify, systematize, analyze and synthesize information from various sources. G004



5. Issue reasoned judgments and make decisions on relevant issues with a critical capacity. G002, G011



6. Develop learning skills to acquire a high degree of autonomy in their own self-training. G007, G014



7. Use information and communication technologies (ICT) in their field of study and professional context. G003



8. Ability to work as a team on tax issues that are proposed.G005









LEARNING RESULTS:

LR1-To know the fundamental tax principles that should guide the design and/or reform of tax systems



LR2-To know the elements that make up the tax



LR3-To know the main tax transfer mechanisms.



LR4-To know how to identify the main design problems of the most important taxes in the tax system.

TAXATION THEORY:

TOPIC 1. Valuation Criteria of Tax Systems.

1.0.- Introduction.

1.1.- Taxes: definition and classification.

1.2.- The elements of a tax.

1.3.- Principles of Taxation.

1.4.- Commitments between principles.

TOPIC 2. Taxation and Efficiency.

2.0.- Introduction.

2.1.- Tax distortions and excess burden.

2.2.- Excess burden.

2.3.- Optimal taxation: efficiency. General rules of efficient taxation.

TOPIC 3. Distributive Incidence of Taxation.

3.0.- Introduction

3.1.- Tax incidence in partial equilibrium: unit taxes on goods.

3.2.- Tax incidence in partial equilibrium: taxes on the value of goods



TAX SYSTEM:

TOPIC 4. Personal Income Tax.

4.0.- Introduction.

4.1.- Why a personal income tax?

4.2.- Income as a measure of the ability to pay the tax.

4.3.- Determination of Tax Income in practice.

4.4.- The most common income tax deductions.

4.5.- Theoretical or formal progressivity of income tax.

4.6.- Choice of taxpayer unit.

4.7.- Inflation and income tax.

TOPIC 5. Corporate Tax.

5.0.- Introduction.

5.1.- Why a corporate income tax?

5.2.- Structure of corporate tax.

5.3.- Should individual and corporate income taxes be included?

TOPIC 6. Indirect Taxation. VAT (Value Added Tax).

6.0.- Introduction.

6.1.- Advantages and disadvantages of indirect taxation on consumption.

6.2.- Selective taxation.

6.3.- General taxes on sales volume.

6.4.- Value added taxes.

6.5.- Complexity in VAT.

6.6.- International aspects of VAT. VAT and the European Union.

In the lecture mode, the professor will give lectures on the conceptual contents of the subject, encouraging the participation of the students.



In the practical classes, questions and problems will be solved in the classroom in a participative way. Problems and exercises will be provided to be developed in class in groups, which will allow them to deepen their theoretical knowledge of the subject. The formulation of questions and open discussion will be encouraged.

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Written test to be taken (%): 70
  • Realization of Practical Work (exercises, cases or problems) (%): 30

There may be two types of evaluation:

(a) Continuous Evaluation: It would be composed by the sum of the grades obtained in :



1.- Written test to be developed on the date of the ordinary evaluation: minimum 70% of the final grade 2.



2.- Evaluable practices to develop throughout the course: maximum 30% of the final grade.



To pass the course in the evaluation modality a) Continuous Evaluation, it would be necessary to obtain a minimum grade of 4 points out of 10 in test 1 (written test to be developed on the date of the ordinary evaluation) as well as to obtain at least 5 points out of 10 as the sum of the scores obtained in 1. and 2.



In case that in the written test to be developed on the date of the ordinary evaluation the minimum grade of 4 points out of 10 is not obtained, the grade that would be recorded in the ordinary exam would be the one obtained in that test out of 10.



b) Final Exam.

Final test comprising 100% of the grade.





In the case that the evaluation has to be done in a non face-to-face way, the tests will be carried out through the tools "Homework" and/or "Questionnaire" of egela.

It will consist of a final test that will comprise 100% of the grade.

In the case that the evaluation has to be done in a non face-to-face way, the tests will be carried out through the tools "Homework" and/or "Questionnaire" of egela.

Basic and complementary bibliography on the topics covered, available in the Library.

Basic bibliography

Albi E., González Páramo J.M. y Zubiri I, “Economía Pública II: Teoría de la Imposición. Sistema Impositivo. Otros Ingresos Públicos. Economía Pública Internacional” Edit. Ariel Economía, 3ª Edición Actualizada. 2009.



Albi E., González Páramo J.M. y Zubiri I “Economía Pública I: Fundamentos. Presupuesto y Gasto. Aspectos Macroeconómicos.” Editorial Ariel. Economía, 3ª Edic. Actualizada. 2009



Problemas de Economía del Sector Público: Ingreso. Centro de Publicaciones F.C.Econ.y Emp. UPV 2012-2013

In-depth bibliography

Rosen H.,” Hacienda Pública” Editorial McGraw-Hill. 7ª Edición. 2007

Musgrave R. y P. Musgrave.,
“Hacienda Pública: Teórica y Aplicada” Editorial McGraw-Hill. 5ª Edición.1992

Stiglitz J. “La Economía del Sector Público” Editorial Antoni Bosch. 2ª Edición 1995

Costa M, Durán J. M. Espasa M, Esteller A. y Mora A., “Teoría Básica de los Impuestos: un Enfoque Económico” Editorial Thomsom Civitas. 2ª Edición 2005

Boadway R. y D.Wildasin.,”Economía del Sector Público” Editorial Instituto de Estudios Fiscales 2ª Edición 1986

Journals

Hacienda Pública Española / Revista de Economía Pública
Crónica Tributaria
Papeles de Economía Española
Presupuesto y Gasto Público
Ekonomiaz: Revista Vasca de Economía
Zergak: Gaceta Tributaria del País Vasco

Web addresses

Nacionales:
Ministerio de Economía y Hacienda: http://www.meh.es/
Agencia Tributaria: http://www.aeat.es/
Boletín Oficial del Estado (BOE): http://www.boe.es/
Boletín Oficial del País Vasco (BOPV): http://www.euskadi.net/
Instituto de Estudios Fiscales: http://www.ief.es/
Diputación Foral de Vizcaya: http://www.bizkaia.net/
Diputación Foral de Álava: http://www.alava.net/
Diputación Foral de Guipúzcoa: http://www.gipuzkoa.net/
Banco de España: http://www.bde.es/
INE: http://www.ine.es
EUSTAT: http://www.eustat.es


Internacionales:
OCDE: http://www.oecd.org/home/
EUROSTAT: http://europa.eu.int/comm/eurostat/