Public University of Navarre

Academic year: 2020/2021 | Previous academic years:  2019/2020 
International Double Bachelor's degree in Economics, Management and Business Administration at the Universidad Pública de Navarra
Course code: 176804 Subject title: PUBLIC ECONOMICS II
Credits: 6 Type of subject: Mandatory Year: 4 Period: 2º S
Department: Economía

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Economic analysis of taxes and other public revenues: assessment criteria for tax systems and tax reform proposals. The theoretical foundations of taxation are studied; the analysis of the effects of different taxes on the behaviour and welfare of economic agents; the criteria that should guide the tax design; and the study of the basic elements and specific problems of the main figures of the tax systems. The contents are structured in two parts: the economic theory of taxation and the tax system.

Theory of taxation: Taxation and distribution of income; Tax incidence; Regulatory aspects: Efficiency and equity of taxes; Taxation and incentives. Tax system. Direct Taxation: Personal Income Tax; Corporate Tax; and Wealth Tax. Indirect taxation: Value Added Tax.


General proficiencies

CG01. Synthesis and Analytic Ability.

CG02. Organizational and Planning Skills.

CG04. Oral and written skills in a foreign language.

CG07. Ability to solve problems.

CG08. Ability to make decisions.

CG09. Teamwork skills.


Specific proficiencies

SP01  Understand economic institutions are as a result and application of theoretical or formal representations about how the economy works.

SP04  Use professional criteria for economic analysis, preferably those based on the handling of technical instruments.

SP06  Write economic management projects at the international, national or regional level.

SP07  Contribute to the good management of resource allocation in both the private and public spheres.

SP08  Identify and anticipate relevant economic problems in relation to the allocation of resources.

SP09  Contribute rationality to the analysis and description of any aspect of economic reality.



Learning outcomes

R1. Conceptual framework to discuss about taxation, the design and reform of tax systems.

R2. Understand the effects on efficiency, equity and incentives of public sector intervention in the economy through different taxes.

R12.  Obtain a conceptual framework to discuss about taxation, the design and reform of tax systems.



Methodology - Activity Classroom hours Non-classroom hours
A-1 Lectures 40  
A-2 Practical sessions (case studies) 15  
A-3 Debates    
A-4 Homeworks    
A-5 Readings   06
A-6 Individual learning   80
A-7 Exams 05  
A-8 Office hours 04   
Total 64 86



Learning Outcome Evaluation system Weight (%) Recoverable
R12. Public sector intervention in the economy: economic analysis of taxation. Solving questions, theoretical exercises and problems related to economic analysis of taxes  30%  
Partial Exam 30% If with the grade of the final exam it does not pass the subject, it is recoverable with the extraordinary exam.
Final Exam 40% Yes, it is recoverable with the extraordinary exam. 
Participation in class, interest and effort +5% No (To be added to the final grade)




Part I: Theory of Taxation

Chapter 1: Public revenues and taxes

Chapter 2: Equity approaches to taxation

Chapter 3: Tax incidence

Chapter 4: Taxation and economic efficiency

Chapter 5: Optimal Imposition: Efficiency and Equity

Chapter 6: Taxation and incentives

Part II: Tax System

Chapter 7: Personal Income Tax

Chapter 8: Corporate Income Tax

Chapter 9: Indirect taxation on consumption. VAT



Access the bibliography that your professor has requested from the Library.

Main bibliography:

Gruber, J. (2019): Public Finance and Public Policy, Sixth Edition, Macmillan learning, USA.

Albi, E., González-Páramo, J.M., Urbanos, R. y Zubiri, I. (2018): Economía Pública II, 4ª edición actualizada. Ariel Economía. Partes I y II.

Rosen, H. y Gayer, T. (2014): Public Finance, Ed. McGraw-Hill, 10th Global Edition, USA

Stiglitz, J.E. y Rosengard, J.K. (2016): Economics of the Public Sector, 4th edition, W. W. Norton & Company.

Additional Bibliography:

Albi, E., Paredes, R. y Rodriguez, J.A. (2019): Sistema Fiscal Español I y II (2 volúmenes), 10ª edición actualizada, Editorial Ariel, Barcelona.

Atkinson, A. y Stiglitz, J. (1988): Lecciones sobre Economía Pública, Instituto de Estudios Fiscales.

Costa, M., Durán, J., Espasa, M., Esteller, A. (coord.)(2015): Economía de los impuestos, McGraw-Hill.

James, S. y Nobes, Ch. (2018): The Economics of Taxation. Principles, policy and practice, 18th Edition, Fiscal Publications, 18th New edition.

Hindriks, J. y Myles, G. (2013): Intermediate Public Economics, 2nd editionThe MIT Press.

Mirrlees, J. y VV.AA (2010): Dimensions of Tax Design. The Mirrlees Review, Institute for Fiscal Studies, Oxford University Press.

Piketty, T. (2010): El capital en el siglo XXI, Fondo de Cultura Económica.

Rosen, H. (2008): Hacienda Pública, 7ª edición, Ed. McGraw-Hill.

Salanie, B. (2011): The Economics of Taxation. 2nd Edition, MIT Press, Cambridge, MA.

Tresch, R.W. (2008): Public Sector Economics, Palgrave Economics.

Viñuela Díaz, J. (2014): Opciones para una reforma del sistema tributario español. Ed. Centro de Estudios Ramón Areces, S.A., Madrid.

VV.AA. (2010): Claves actuales de la fiscalidad del futuro, Papeles de Economía  Española 125/126.

VV.AA. (2014): La fiscalidad en España: Problemas, retos y propuestas, Papeles de Economía Española 139.

VV.AA. (2015): El sistema fiscal a debate. Competitividad, equidad y lucha contra el fraude, Ekonomiaz 88.

VV.AA. (2017): La teoría económica de las reformas fiscales: análisis y aplicaciones para España, Papeles de Economía Española 154.

Tax Statistics

Ministerio de Economía y Hacienda (

EUROSTAT (2020): Government finance statistics. Data 1996-2019, European Commission, Luxembourg.

OECD (2020): Revenue Statistics 1965-2019.

Internet links (Instituto de Estudios Fiscales. Ministerio de Economía y Hacienda)> (European Commission, D.G. Taxation and Customs Union) (Centre for Tax policy and Administration)






Aulario. Universidad Pública de Navarra.