Public Sector Economics

Class # 1 (4/14): Introduction of the Course and Economics of Taxation I

*Introduction of the course

*Taxation and social fairness: a tax burden perspective

*Features of a Sound Tax Regime

*Tax burden allocationPolicy discussion: Examples from Vietnam

Readings:

*Jonathan Gruber (2011), Chapter 1

*Joseph E. Stiglitz (2000), Chapter 18

PROBLEM SET #1 (ECONOMICS OF TAXATION) DISTRIBUTED: DUE on 4/21.

Class # 2 (4/16): Economics of Taxation II (Mai Hoàng Chương)

*Taxation and its economic inefficiency

*Theory of optimal taxation

*Policy discussion: Tax impact on labor and saving

Readings:

*Joseph E. Stiglitz (2000), Chapters 19 & 20

*Jonathan Gruber (2011), Chapters 20, 21 & 22

POLICY MEMO #1 (TAXATION OF ALCOHOL IN THAILAND) DISTRIBUTED: DUE ON 4/23

POLICY MEMO #2 (FINANCING TRANSPORTATION IN PHILADELPHIA) DISTRIBUTED: DUE ON 4/24.

Class # 3: Taxation of Wealth (Jay K. Rosengard)

*Tax on land and buildings in general

*Policy discussion: non- arable land tax in Vietnam

Readings:

*WB (2011), Chapter 9: Tax on Land and Assets

*Jay K. Rosengard (1998), Introduction, Chapter 1 in Property Tax Reform in Developing Countries, Kluwer Academic Publishers, pp. 1-30

PROBLEM SET #1 (ECONOMICS OF TAXATION) DUE

Class # 4: Case study (Jay K. Rosengard)

Readings:

*Jay K. Rosengard (1998), Indonesia Case Study, Chapter 5 in Property Tax Reform in Developing Countries, Kluwer Academic Publishers, pp. 111-156.

Class # 5: Taxation of Income (Jay K. Rosengard)

*Personal and corporate income tax in general

*Policy discussion: Personal and corporate income tax Reform in Vietnam

Readings:

*Joseph E. Stiglitz (2000), Chapter 21

*Janet Stotsky (1995), The Base of the Personal Income Tax and The Choice of Taxable Unit and John Norregaard, The Progressivity of Personal Income Tax Systems in Parthasarathi Shome, ed., Tax Policy Handbook, Washington, D.C.: IMF, pp. 121-136

Class # 6: Case study (Jay K. Rosengard)

Readings:

*Jay K. Rosengard and Do Ngoc Huynh (2006), Vietnam Personal Income Tax: Policy Discussion Paper

*Vu Thanh Tu Anh and Huynh The Du (2009), Draft of Law on Personal Income Tax: more harm!, Saigon Economic Review.

Class # 7: Taxation of Consumption (Jay K. Rosengard)

*General sales and companion use taxes, excise taxes, value added taxes

*Comparison of sales and value added taxes

*Policy discussion: Value Added Tax Reform in Vietnam

Readings:

*WB (2011), Chapter 7: VAT

*Jonathan Gruber (2011), Section 25.3: Consumption Tax, pg. 754-763

*Do Thien Anh Tuan (2012), Value Added Tax Reform in Vietnam

PROBLEM SET #2 (DIRECT AND INDIRECT TAXES) DISTRIBUTED: DUE ON 05/05

Class # 8: Case study (Jay K. Rosengard)

Readings:

*Aswin Techajareonvikul (2005), Liquor Tax Reform in Thailand: Competing Interests and Objectives, HKS Case No. CR14-06-1857.0

POLICY MEMO #1 (TAXATION OF ALCOHOL IN THAILAND) DUE.

Class # 9: Tax Reform (Jay K. Rosengard)

*Rationale for, obstacles to, and lessons of tax reform

*Independent revenue authorities

*Cases: Examples from selected countries

Readings:

*Jonathan Gruber (2011), Chapter 25

*Joel Slemrod and Jon Bakija (2008), Elements of Fundamental Reform, Chapter 6 in Taxing Ourselves, Russell Sage Foundation

*WB (2011), Chapter 5: Tax Reform and Revenue Assignments in Vietnam

Class # 10: Case study (Jay K. Rosengard)

*HKS Case Study, Reform of the BIR in the Philippines.

PROBLEM SET#3 (TAX REFORM, TAX INCENTIVES, COMPLIANCE AND ENFORCEMENT) DISTRIBUTED: DUE ON 5/12.

Class # 11: User Charges – Framework (Jay K. Rosengard)

*Taxes vs. user charges (fees)

*Types and structures of user charges

Readings:

*Ronald C. Fisher (1996), Pricing of Government Goods: User Charges, in State and Local Public Finance, 3rd ed., Richard D. Irwin, pp. 170-196

*Do Thien Anh Tuan (2012). HCMC-Trung Luong Highway

Class # 12: Case study (Jay K. Rosengard)

*Mary Lovely, Financing Transportation in Philadelphia, HKS Case No. C16-81-476.

POLICY MEMO #2 (FINANCING TRANSPORTATION IN PHILADELPHIA) DUE.

Class # 13: Tax Incentives, Compliance, and Enforcement (Huynh The Du)

*Tax avoidance and tax evasion

*Positive and negative incentives

*Policy discussion: Examples from selected countries

Readings:

*Joseph E. Stiglitz (2000), Chapter 24

*WB (2011), Chapter 2: Tax Compliance and Sources of Revenue Leakage: Conceptual Framework and Assessment

PROBLEM SET #2 (DIRECT AND INDIRECT TAXES) DUE.

Class # 14: Case study (Huỳnh Thế Du)

Readings:

*Do Thien Anh Tuan and Huynh The Du (2014), Transfer Pricing of FDI Enterprises in Vietnam, FETP case study.

Class # 15: History of Taxation in Vietnam (Phan Hiển Minh)

Readings:

*Phan Hiển Minh, Nguyễn Ngọc Thanh, and Châu Thành Nghĩa (2001), Overview of Taxation, Chapter I in Practical Taxation Handbook, Statistics Press, 2001, pp. 1–10.

*WB (2011), Chapter 8: Taxation In Vietnam: Who Pays What?

Class # 16: Fiscal Balance, Fiscal Deficits, and Deficit Financing (Huỳnh Thế Du)

*Tradeoffs in maintaining a balanced budget

*Alternatives for financing fiscal deficits

*Policy discussion: Fiscal Deficits and Deficit Financing in Vietnam

Readings:

*Jonathan Gruber (2011), Chapter 4

*Joseph E. Stiglitz (2000), Chapter 28

PROBLEM SET#3 (TAX REFORM, TAX INCENTIVES, COMPLIANCE AND ENFORCEMENT) DUE

POLICY MEMO #3 (PUBLIC DEBT IN VIETNAM) DISTRIBUTED, DUE ON 5/19.

Class # 17: Public Debt and Management (Đỗ Thiên Anh Tuấn)

*Public debt, government debt, and SOE debts

*Public debt crisis and US and EU fiscal space

*Public debt risk management

*Policy discussion: public debt in Vietnam

Readings:

*Vu Thanh Tu Anh (2011), Public Debt, Government Debt, and SOE Debts

*Do Thien Anh Tuan (2013), The Future for Vietnam's Public Debt: Trends and Challenges

*Moody's Analytics (2011), Fiscal Space, Special Report 12-2011.

*World Bank (2009), Debt Management Performance Assessment (DeMPA) Tool.

Review (Optional)

Class # 19: Economic Rationale for Public Sector Roles and Interventions (Mai Hoang Chuong)

*Market failures due to market power, asymmetric information, externality, public goods, equality, macro imbalances.

*Correct market failures and mobilize resources for the public sector operation.

*The changing role of government in transitional economies

Readings:

*Joseph E. Stiglitz (2000), Chapter 1

*Huynh The Du (2013), The role and the nature of the state.

Class # 20: Public Choice (Huỳnh Thế Du)

*Differences between collective actions and individual actions

*Government models

Readings:

*Joseph E. Stiglitz (2000), Chapter 7

*Xuan Trung – Quang Thien (2005), Dumping coal, Excerpt in Nights before Doi Moi, Tuoi Tre Newspaper (distributed in class)

POLICY MEMO #4 (THE BIG DIG) DISTRIBUTED; DUE ON 7/3.

Mid-term Exam