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Crawford School of Public Policy · ANU College of Law, Governance and Policy
This course is available for on-campus & remote (online) learning. All students participate in interactive, real-time classes. This course explores the economic analysis of tax systems and income transfer programs. The emphasis is understanding how, and the extent to which, individuals and firms react to those policies – the central question addressed in the growing field of empirical public finance. This understanding is crucial to the optimal design of tax and transfer systems. The course will cover tax incidence, efficiency and optimal taxation, income taxation and labour supply, taxes on consumption, taxes on savings, taxes on investment, and corporate taxation. Particular attention will be paid to the application of quasi-experimental methods to public finance, with students exposed to a variety of estimation techniques. By reading articles that apply quasi-experiments for most topics, students are expected to develop a practical understanding of issues involved in applying econometric models to derive understanding from tax and transfer program data. Examples will be drawn from taxes and income transfer programs implemented in Australia and internationally.
Group assignment
Learning outcomes 1, 2, 3, 4, 6
Mid-term exam (2 hours)
Learning outcomes 1, 2, 3, 4, 5, 6
Final exam (3 hours)
Learning outcomes 1, 2, 3, 4, 5, 6
The standard workload for a 6 unit course is 130 hours including in class time and independent study.
The course will draw from the following textbooks: Gruber, J. (2022): Public Finance and Public Policy, Worth Publishers, 7th Edition. Wooldridge, J. M. (2025): Introductory Econometrics — A Modern Approach, 8th Edition. Abelson, P. (2018): Public Economics: Principles and Practice, 3rd Edition. Preliminary Reading The course will draw on a wide range of published research in Australia and overseas.