European Public Choice And Public Economics 2017/2018

The program of the course is divided into 3 main parts:

•                    An introduction to the basics of taxation

o   Basic models of taxation(on demand and supply)

•                    Public provision of public goods.

o   Samuelson’s Rule and Lindhal prices.

o   Median income theorem.

o   Vickrey-Clarke-Groves Mechanism

•                     Tax Models

o   Optimal commodity taxation.

a. Commodity taxation in competitive market. Ramsey’ rule.

b. Commodity taxation with market power.

o   Optimal income taxation.

• Basics of Procurement
  • What is public procurement
  • Competitive procedures
  • Auction and scoring rules

Main references

The main text books are in general good enough to cover this part of the program (Gruber, Myles-Hindricks, Myles, Rosen e Gayer). The course basically follows Intermediate Public Economics (2006).

Public provision of public goods

Intermediate public Economics (2006), Hindriks & Myles (Ch. 5 1st edition or Ch. 6 2nd edition)

Advanced Microeconomic TheoryJehle, Reny (more challenging)

The Economics of Taxation, Salanie, B. (2002), MIT Press

Further readings:

Samuelson, Paul A. 1954, “The Pure Theory of Public Expenditure,”  Review of  Economics and Statistics, 36, 4: 387-389.

Samuelson, Paul A.,,1955, “Diagrammatic Exposition of a Theory of Public

Expenditure,” Review of Economics and Statistics, 37, 4: 350-35

Tax Models – Optimal commodity/income taxation.

Intermediate Public Economics (2006), Hindriks & Myles (Ch. 14-15 first-edition or 15-16 2nd edition)

Salanie, B. (2002), The Economics of Taxation, MIT Press: there are several simple model of taxation in increasingly less simple set-ups). Commodity (indirect) taxation in Chapter 3. (useful reading)

The model are highly simplified (but with all the original message intact) versions of the original difficult contribution, Diamond and Mirrlees (AER 1971).

Further readings:

•                    Matthew, Weinzierl, and Yagan (2009) “Optimal Taxation in Theory and Practice” Journal of Economic Perspective.

•                    Mirrlees, J.A., (1971), ”An Exploration in the Theory of Optimum Income Taxation”, Review of Economic Studies, p.175-208

•                    Mirrlees, J.A. (1976) ”Optimal tax theory”, Journal of Public Economics, 6, pp.327-358

•                    Diamond, Peter A., and James A. Mirrlees, 1971, “Optimal Taxation and Public Production I: Production Efficiency,” American Economic Review, 61, 1: 8-27.

•                    Diamond, Peter A., and James A. Mirrlees, 1971, “Optimal Taxation and Public  Production II: Tax Rules,” American Economic Review, 61, 3: 261-278.

•                    Seade, J. (1982) ”On the Sign of the Optimum Marginal Income Tax”, Review of Economic Studies, 49, pp.637-643

•                    Tuomala, M. (1984) ”On the Optimal Income Taxation”, Journal of Public Economics, 23, pp.351-366

•                    Tuomala, M. (1985) ”Simplified formulae for optimal linear income taxation”, Scandinavian Journal of Economics, 87, pp.668-72

•                    Ebert, U. (1992) ”A Reexamination of the Optimal Nonlinear Income Tax”, Journal of Public Economics, 49, pp.47-73

•                    Auerbach, Alan J.,and James R. Hines, Jr.,2002, “Taxation and Economic Efficiency,” Chapter 21, in Handbook of Public Economics, volume 3, edited by Alan J. Auerbach and Martin Feldstein (Amsterdam: Elsevier): 1360-1383

•                    Slemrod, Joel,1990, “Optimal Taxation and Optimal Tax Systems,” Journal of Economic  Perspectives, 4, 1: 157-178.

Procurement

Handbook of Procurement, Piga G., Spagnolo G. and Dimitri N.

The program of the course is divided into 3 main parts:

•                    An introduction to the basics of taxation

o   Basic models of taxation(on demand and supply)

•                    Public provision of public goods.

o   Samuelson’s Rule and Lindhal prices.

o   Median income theorem.

o   Vickrey-Clarke-Groves Mechanism

•                     Tax Models

o   Optimal commodity taxation.

a. Commodity taxation in competitive market. Ramsey’ rule.

b. Commodity taxation with market power.

o   Optimal income taxation.

• Basics of Procurement
  • What is public procurement
  • Competitive procedures
  • Auction and scoring rules

Main references

The main text books are in general good enough to cover this part of the program (Gruber, Myles-Hindricks, Myles, Rosen e Gayer). The course basically follows Intermediate Public Economics (2006).

Public provision of public goods

Intermediate public Economics (2006), Hindriks & Myles (Ch. 5 1st edition or Ch. 6 2nd edition)

Advanced Microeconomic TheoryJehle, Reny (more challenging)

The Economics of Taxation, Salanie, B. (2002), MIT Press

Further readings:

Samuelson, Paul A. 1954, “The Pure Theory of Public Expenditure,”  Review of  Economics and Statistics, 36, 4: 387-389.

Samuelson, Paul A.,,1955, “Diagrammatic Exposition of a Theory of Public

Expenditure,” Review of Economics and Statistics, 37, 4: 350-35

Tax Models – Optimal commodity/income taxation.

Intermediate Public Economics (2006), Hindriks & Myles (Ch. 14-15 first-edition or 15-16 2nd edition)

Salanie, B. (2002), The Economics of Taxation, MIT Press: there are several simple model of taxation in increasingly less simple set-ups). Commodity (indirect) taxation in Chapter 3. (useful reading)

The model are highly simplified (but with all the original message intact) versions of the original difficult contribution, Diamond and Mirrlees (AER 1971).

Further readings:

•                    Matthew, Weinzierl, and Yagan (2009) “Optimal Taxation in Theory and Practice” Journal of Economic Perspective.

•                    Mirrlees, J.A., (1971), ”An Exploration in the Theory of Optimum Income Taxation”, Review of Economic Studies, p.175-208

•                    Mirrlees, J.A. (1976) ”Optimal tax theory”, Journal of Public Economics, 6, pp.327-358

•                    Diamond, Peter A., and James A. Mirrlees, 1971, “Optimal Taxation and Public Production I: Production Efficiency,” American Economic Review, 61, 1: 8-27.

•                    Diamond, Peter A., and James A. Mirrlees, 1971, “Optimal Taxation and Public  Production II: Tax Rules,” American Economic Review, 61, 3: 261-278.

•                    Seade, J. (1982) ”On the Sign of the Optimum Marginal Income Tax”, Review of Economic Studies, 49, pp.637-643

•                    Tuomala, M. (1984) ”On the Optimal Income Taxation”, Journal of Public Economics, 23, pp.351-366

•                    Tuomala, M. (1985) ”Simplified formulae for optimal linear income taxation”, Scandinavian Journal of Economics, 87, pp.668-72

•                    Ebert, U. (1992) ”A Reexamination of the Optimal Nonlinear Income Tax”, Journal of Public Economics, 49, pp.47-73

•                    Auerbach, Alan J.,and James R. Hines, Jr.,2002, “Taxation and Economic Efficiency,” Chapter 21, in Handbook of Public Economics, volume 3, edited by Alan J. Auerbach and Martin Feldstein (Amsterdam: Elsevier): 1360-1383

•                    Slemrod, Joel,1990, “Optimal Taxation and Optimal Tax Systems,” Journal of Economic  Perspectives, 4, 1: 157-178.

Procurement

Handbook of Procurement, Piga G., Spagnolo G. and Dimitri N.