The subject "Economic Effects of Taxes" is a compulsory subject of the 2nd quarter of the 3rd year of the Degree in Taxation and Public Administration. It is part of the module "Bases for the Analysis of Taxation and Public Administration".



In this course, several theoretical models are developed to analyze the effects that the main taxes can have on the behavior of economic agents and the degree of confirmation of these models by the empirical results currently available is analyzed.



In order to develop the subject, it may be helpful to have taken the subject "Régimen Fiscal de la Empresa" in the first four-month period of the third year, although this is not an essential requirement.

SPECIFIC COMPETENCES:

1.-Understand the relationships between the main taxes and the decisions of economic agents.

2.-To handle the main theories that model the behaviors of economic agents.

3.-To analyze the implications of the previous points for the design of microeconomic fiscal policies.

4.-To know the main existing empirical evidences on the previous models.



TRANSVERSAL COMPETENCES

5.- To know how to search, identify, systematize, analyze and synthesize the information coming from different sources.

6.- To make reasoned judgments and decisions on relevant issues with critical capacity G003, G018.

7.- Develop learning skills to acquire a high degree of autonomy in their own self-training G005

8.- Use the Information and Communication Technologies (ICT) in their field of study and professional context G009

9.- Ability for written and oral communication, especially in the elaboration of clear and coherent reports G004, G011.





LEARNING OUTCOMES



LO1-Knows the theories on the economic behavior of agents and their interrelation with the tax system.

LO2-Understands the degree of confirmation of such theories by currently available empirical results.

LO3-Understands and manages the different tax policies of current tax systems and their interrelation with the previous points.

TOPIC 1. TAX INCIDENCE ANALYSIS

1.1. Introduction

1.2. Types of Incidence

1.3. Incidence Measurement

1.4. Empirical Evidence

TOPIC 2 PERSONAL INCOME TAX: EFFECTS ON LABOR SUPPLY

2.1. Effects of a Flat Rate Tax

Effects of a Proportional Income Tax 2.3.

Effects of a Progressive Income Tax 2.4.

2.4. Inclusion of Unearned Income

2.5. Empirical Evidence

TOPIC 3. PERSONAL INCOME TAX: EFFECTS ON SAVINGS

3.1. Model 1: Wage Income in the Present Period Only

3.2. Model 2: Wage Income in the Present and Future Periods

3.3. Empirical Evidence

TOPIC 4. PERSONAL INCOME TAX: EFFECTS ON PORTFOLIO COMPOSITION

4.1. Introduction

4.2. Taxation of income with full loss compensation

4.3. Tax on income with partial or no loss compensation 4.4.

4.4. Safe asset with positive return

4.5. Empirical Evidence

TOPIC 5 ECONOMIC EFFECTS OF CORPORATE INCOME TAX

5.1. Introduction.

5.2. Corporate Income Tax and the dividend policy.

5.3. Corporate income tax and the financial decisions of the company. 5.4.

5.4. Corporate income tax and investment.

5.5. Empirical evidence

TOPIC 6 ECONOMIC EFFECTS OF OTHER TAXES

6.1. SOCIAL SECURITY CONTRIBUTIONS

6.2. INDIRECT TAXES

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



In the practical classes, questions and problems will be solved in the classroom. Students will be provided with problems and exercises that they will have previously had to work on individually and that will later be developed in class as a group, which will allow them to deepen their 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

The course could be evaluated in two ways:

(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. Evaluable practices to be developed 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 will be recorded in the ordinary exam will 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.

There will be 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 done through egela's "Homework" and/or "Quiz" tools.

Basic and complementary bibliography on the topics covered.

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.

In-depth bibliography

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

Atkinson A. y Stiglitz J., "Lecciones sobre Economía Pública", Instituto de Estudios Fiscales, 1980

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

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

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

Journals

Hacienda Pública Española/ Revista de Economía Publica http://www.ief.es/

Papeles de Economía Española http://www.funcas.ceca.es/

Presupuesto y Gasto Público http://www.ief.es/

Web addresses

Nacionales:
http://www.meh.es/
http://www.ief.es/
http://www.funcas.ceca.es/
http://www.bde.es/
http://www.ine.es
http://www.eustat.es


Internacionales:
http://www.oecd.org/home/
http://europa.eu.int/comm/eurostat/
http://www.ifs.org.uk/