This course is a one-semester introduction to the economic analysis of taxation. It covers both theoretical contributions, such as the theory of optimal income and commodity taxation, as well as empirical work, such as the study of how taxes affect labor supply. The course is designed to acquaint students with key questions in the economics of taxation, and to equip them to carry out their own research in this field.

Pre-requisites

The course requires familiarity with calculus-based microeconomic analysis and in particular a strong command over duality methods in the theory of the household and the firm. Some background in growth theory is also helpful.

Major Assignments and Grading

There will be four problem sets, a mid-term take-home exercise, and an in-class final exam. The problem sets will count for roughly 15% of the grade, the mid-term for about 35%, and the final for the other 50%.