UNIVERSITY OF ALBERTA

DEPARTMENT OF ECONOMICS

ECONOMICS 553: ECONOMICS OF TAXATION

WINTER 2015

Instructor: Tilman Klumpp Classes: T/Th 3:30–4:50 pm

Office: Tory 9-20 Room: Tory 1-83
E-mail: klumpp@ualberta.ca Office hours: W 2:00–3:30 pm
Phone: (780) 492-5437

Prerequisites: Economics 503.

Text: Our primary textbook will be Salanié, Bernard: The Economics of Taxation.
MIT Press, 2011 (2nd edition). A list with supplementary articles is attached to
this syllabus.

Description: The course is an introduction to the economics of taxation. The

following topics will be covered:
1. Behavioral responses to taxation and the burden of taxation (Ch. 1)
2. Tax incidence (Ch. 2)
3. Commodity taxation (Ch. 3)
4. Income taxation (Ch. 4)
5. Mixed taxation (Ch. 5)
6. Taxation in dynamic stochastic economies (Ch. 6)

Grading: Presentation (40%) + final exam (60%). Final grades will be assigned
in accordance with university and departmental policies.

Presentations: Each student will give a presentation of an article from the reading
list. I will try to assign topics according to each student’s interests, but I cannot
guarantee that this will always be possible. You can also suggest a paper that is not
on the list. Presentations will take place at the end of the semester (last n classes).
The length of each presenation depends on the number of students and how many
classes will be available for presentations, but 30 minutes is a good approximation.
As presenter, it is your job to read and understand your assigned paper and to
communicate its main message/insights to the class effectively. You will be graded
based on how well you achieve this objective. Further instructions will be provided
in class.

1
UofA fine print:

1. Attendance: In cases of potentially excusable absences due to illness or domestic affliction, notify your in-
structor by e-mail within two days. Regarding absences that may be excusable and procedures for addressing
course components missed as a result, consult §23.3(1) and §23.5.6 of the University Calendar. Be aware
that unexcused absences will result in partial or total loss of the grade for any exams, tests, or assignments
that are not handed in or completed as a result.

2. Deferred final exam. A student who has missed a final exam because of incapacitating illness, severe
domestic affliction or other compelling reason (including religious conviction) may apply for a deferred
exam. A deferred final exam will not be approved if a student, excluding the final exam, has completed less
than half of the assigned work (Calendar §23.5.6 (2)).
PLEASE NOTE: The deferred final exam, should one be requires, is on Monday, May 4, 2015,
at 10:00 a.m. in the Economics Department office (report to 8-14 Tory).

3. Recording of lectures. Audio or video recording of lectures, labs, seminars, or any other teaching environment
by students is allowed only with the prior written consent of the instructor or as a port of an approved
accomodation pan. Recorded material is to be used solely for personal study, and is not to be used or
distributed for any other purpose without prior written consent from the instructor.

4. Academic integrity. The University of Alberta is committed to the highest standards of academic integrity
and honesty. Students are expected to be familiar with these standards regarding academic honesty and to
uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves
with the provisions of the Code of Student Behaviour (www.governance.ualberta.ca/en/CodesofConductand
ResidenceCommunityStandards/CodeofStudentBehaviour.aspx) and avoid any behaviour that could poten-
tially result in suspicions of cheaing, plagiarism, misrepresentation of facts and/or participation in an ofence.
Academic dishonesty is a serious offence and can result in suspension or expulsion from the University. All
students should consult the “Truth-In-Education” handbook or website (www.uofawek.ualberta.ca/TIE)
regarding the definitions of plagiarism and its consequences when detected. [...] An instructor or coordinator
who is convinced that a student has handed in work that he or she could not possibly reproduce without
outside assistance is obliged, out of consideration of fairness to other students, to report the case to the
Associate Dean of the Faculty. Before unpleasantness occurs consult www.uofawek.ualberta.ca/TIE; also
discuss this matter with any tutor(s) and with your instructor.

5. Learning and working environment. The Faculty of Arts is committed to ensuring that all students, faculty,
and staff are able to work and study in an environment that is safe and free from discrimination and
harassment. It does not tolerate behaviour that undermines that environment. The Department urges
anyone who feels that this policy is being violated to

• discuss the matter with the person whose behavious is causing concern; or
• if that discussion is unsatisfactory, or there is concern that direct discussion is inappropriate or
threatening, discuss it with the Chair of the Department.

For additional advice or assistance regarding this policy you may contact the student ombudservice (www.
ombudservice.ualberta.ca). Information about the University of Alberta Discrimination and Harassment
Policy and Procedures can be found in the GFC Policy Manual, §44 (gfcpolicymanual.ualberta.ca).