Public finance focuses on the government’s activities and the associated economic effects. We first start by understanding why government should exist. The discussion also includes the government’s activities—purchasing goods and services, investing, and transferring payments. These topics are covered in Public Economics in the Fall semester.

This course centers on the revenue side of a government—how a government pays for its activities, especially on taxation. Government activities can be achieved through taxes, debts, asset transfers, public enterprise operations, seigniorage, and other means. The choice of a government financing means would affect the efficiency of markets, consumption, and the formation and distribution of income and wealth.

We will start by discussing the tax analysis framework, mainly on tax incidence analyses. The second part of this course will introduce each of the main tax systems, including (1) the theory of income taxation, (2) the taxation of corporate income, (3) taxes on consumption and sales, and the taxes on wealth and property.

While proceeding in a traditional lecture style, this course will incorporate many discussions on relevant public policy issues. Both international and domestic issues may be used as supplemental materials in classes. Summarizing the relevant issues and/or policies and presenting your thoughts and analyses will be required. Moreover, class participation is emphasized, and students will be evaluated based on their class engagement (asking and answering questions in class and group presentation).