2005 Handbooks

This is a course in applied public economics. It uses microeconomics to analyse features of the existing Australian tax and social security systems, as well as proposed directions for reform.

The course will integrate the analysis of efficiency costs of taxes and benefits with the assessment of both vertical and horizontal equity. It will examine methods of interpersonal welfare comparison. A feature of the course will be an emphasis on data and measurement.

Topics covered include: an introduction to the Australian tax and social security systems; basic theory of incidence; general equilibrium effects of taxes; tax equivalence; the impact of tax and social security on labour supply and savings; optimal income and commodity taxation; optimal mix of taxation; the importance of the unit for the design of taxes and means testing benefits; capital taxation; the effect of taxes on risk taking; tax evasion; company taxation; fiscal federalism.