This is the second of two courses in the graduate public economics sequence at Berkeley. This one-semester course covers (I) optimal labor income taxation and redistribution, labor income taxation: behavioral responses to taxes and transfers, social security and disability insurance. (II) Inequality, the distribution and taxation of wealth and capital income, and the challenges that tax systems face in a globalized world. For each topic, we combine theoretical models with empirical evidence. Each lecture is posted in pdf format with linked references.

The source tex file and the pdf tables and graphs are also provided separately so that you can use and adapt this material for your own lectures (no permission needed). We would like to thank Raj Chetty and many other colleagues whose comments and lecture notes contributed to the development of these slides.

Lecture Slides:

Introduction and Road Map (updated 2022)

pdf tex figures&tables

Optimal Labor Income Taxes and Transfers (updated 2022)

pdf tex figures&tables

Labor Supply Responses to Taxes and Transfers (updated 2022)

pdf tex figures&tables

Taxable Income Elasticities (updated 2022)

pdf tex figures&tables

Social Security, Retirement, and Disability (updated 2022)

pdf tex figures&tables

Tax Enforcement (updated 2022)

pdf tex figures&tables

Capital Income Taxation (updated 2022)

pdf tex figures&tables

Tax Favored Retirement Accounts: IRAs and 401(k)s (old 2014)

pdf tex figures&tables

Assignments:

ps1 (due date: March 7) ps1 solutions (available after due date)

ps2 (due date: April 4) ps2 solutions (available after due date)

Referee Report (due date: April 25): Instructions 2017 JEP paper on how to write an effective referee report Agrawal-Foremny-Martinez Munoz

2020 final exam: exam and solutions

2021 final exam: exam and solutions

2022 final exam: exam and solutions

The source tex file and the pdf tables and graphs are also provided separately so that you can use and adapt this material for your own lectures (no permission needed). We would like to thank Raj Chetty and many other colleagues whose comments and lecture notes contributed to the development of these slides.

Syllabus

Lecture Slides:

Introduction and Road Map (updated 2022)

pdf tex figures&tables

Optimal Labor Income Taxes and Transfers (updated 2022)

pdf tex figures&tables

Labor Supply Responses to Taxes and Transfers (updated 2022)

pdf tex figures&tables

Taxable Income Elasticities (updated 2022)

pdf tex figures&tables

Social Security, Retirement, and Disability (updated 2022)

pdf tex figures&tables

Tax Enforcement (updated 2022)

pdf tex figures&tables

Capital Income Taxation (updated 2022)

pdf tex figures&tables

Tax Favored Retirement Accounts: IRAs and 401(k)s (old 2014)

pdf tex figures&tables

Assignments:

ps1 (due date: March 7) ps1 solutions (available after due date)

ps2 (due date: April 4) ps2 solutions (available after due date)

Referee Report (due date: April 25): Instructions 2017 JEP paper on how to write an effective referee report Agrawal-Foremny-Martinez Munoz

2020 final exam: exam and solutions

2021 final exam: exam and solutions

2022 final exam: exam and solutions