Fiscal Policy, Globalization and Development

This course is aimed at students who are interested in fiscal policy including tax and expenditure law and policy concerning how to fund government effectively.  It examines the key challenges of fiscal policy in achieving sufficient revenues, economic prosperity and development and in addressing social justice and inequality in a context of globalisation. 

The course provides an introduction to public finance law and policy; tax policy principles; and tax reform and law design principles. We then examine several topical case studies of particular fiscal systems and tax or expenditure reforms or policies in Australia, the Asia-Pacific region and the world. The subject takes a critical approach to examining the principles, processes and outcomes of fiscal policy. Students do not need to have a detailed knowledge of tax law or economics to do this subject.

Principal topics are:

•             Public finance law and policy including budget laws, fiscal institutions and rules

•             General principles of public finance

•             Tax principles relevant to development: efficiency, distributive justice, administration

•             The relationship between tax, lending and aid for low income countries

•             Resource taxation including rent taxes, royalties and budgeting for oil and mineral revenues

•             Fiscal federalism and decentralisation including tax allocation and revenue sharing between governments

•             The corporate tax and multinationals in the context of economic globalization

•             International tax transparency and coordination between governments

•             The future: global taxes?

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

On successful completion of this course, students will be able to:

•    Demonstrate a good understanding of the fiscal framework for taxing and spending and of fiscal policy principles
•    Analyse critically tax reforms and policy choices in developed and developing countries  
•    Research, and examine key issues and challenges in fiscal policy in a particular development or country context.
•    Present in depth written analysis of key issues and challenges in fiscal policy in a particular development or country context.

Research-Led Teaching

This class is based on my research and policy engagement about tax policy for inclusive economic development in a modern economy. The class provides a broad-ranging survey of key tax policy and budget issues for developing and developed country governments today.

Required Resources

Readings will be available on Wattle.

Recommended Resources

Readings will be available on Wattle.

Staff Feedback

Students will be given feedback in the following forms in this course:

• Written comments for each individual student on their submitted assessment
• Verbal comments for individual students who wish to receive such feedback and make an appointment to do so
• Feedback to the whole class during the class time and in writing.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Intensive Day 1Overview; getting to know each otherTopic 1: Introduction: Why Study Public Finance?1.1 Key questions in Public Finance1.2 Spending, Taxes, Deficits and Debt1.3 Government Intervention and Economic Outcomes1.4 Refresher Maths for this UnitTopic 2: Theoretical Tools in Public Finance2.1 Constrained Optimisation2.2 Equilibrium and Social Welfare	Short Quiz
2	Intensive Day 2Topic 3: Empirical Tools of Public Finance3.1 Correlation and Causality3.2 Measuring Causation w Data We'd Like to Have3.3 Measuring Causation w Data We'd Actually GetTopic 4 Externalities - Theory and Practice4.1 Conceptual Framework4.2 Public Sector Remedies for Externalities4.3 Taxation vs Regulation4.4 Externalities in Action	Short QuizSTUDENT PARTICIPATION: STUDENTS LEADING DISCUSSION ON SET READINGS
3	Intensive Day 3Topic 5 Public Goods5.1 Optimal Provision of Public Goods5.2 Public Provision of Public GoodsTopic 6 Cost Benefit Analysis6.1 Measuring the Costs of Public Projects6.2 Measuring the Benefits of Public Projects	Short QuizSTUDENT PARTICIPATION: STUDENTS LEADING DISCUSSION ON SET READINGS
4	Intensive Day 4Topic 7: Taxation: How It Works and What It Means7.1 Types of Taxation 7.2 Structure of Taxation: USA vs Australia7.3 Measuring Fairness of Tax Systems7.4 Defining the Income Tax BaseTopic 8 Equity Implications of Taxation: Tax Incidence8.1 Rules of Taxation Incidence8.2 General Equilibrium Tax Incidence Analysis	Short QuizSTUDENT PARTICIPATION: STUDENTS LEADING DISCUSSION ON SET READINGS
5	Intensive Day 5Topic 9: Taxes on Labour Supply 9.1 Basic Theory9.2 Tax Policies that Promote Labour Supply9.3 Earned Income Tax Credit9.4 Tax Treatment of Child Care Topic 10: Taxes on Wealth and Savings10.1 Taxation and Savings - Theory and Evidence10.2 Incentives for Retirement Savings10.3 Taxes on Risk-taking and Wealth	Short QuizRESEARCH ESSAY MEETINGS TO BE SCHEDULEDGROUP EXERCISE - TAX INCENTIVESSCHEDULED CLASS TIME
6	Intensive Day 6Topic 11: Special Topics and Issues11.1 Income and Wealth Distribution in Australia11.2 Gender Responsiveness of Tax Initiatives11.3 Climate Change Risks11.4 Land and Resource Taxation CLASS CONCLUSION	STUDENT CLASS PRESENTATIONS ON SET READINGS

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Short Quizzes x 5	10 %	*	*	1
Leading Discussion in Class on a Set Reading	10 %	*	*	1,2,4
Short Essay	20 %	11/10/2024	18/10/2024	2,3,4
Critical Research Essay In Public Finance	60 %	04/11/2024	28/11/2024	2,3,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Students are expected to prepare readings ahead of time and to actively participate in seminars.

Assessment Task 1

Short Quizzes x 5

Students will be asked to answer a short quiz consisting of multiple-choice and short-answer questions on each day the class meets. These quizzes - worth 2% each - will assess your understanding of concepts covered in class. Feedback and marks for each quiz will be returned to the student no later than 48 hours of being taken/administered.

Full details and rubric will be available on the Wattle course page by Day 1 of the course, under the Assessment tab.

Assessment Task 2

Leading Discussion in Class on a Set Reading

Each student is required to lead discussion on ONE class reading on an assigned topic related to content covered in the course. The particular reading and specific time will be assigned and worked out on Day 1, and will be scheduled during class Days 2, 3, 4, and 6.

Full details and rubric will be available on the Wattle course page by Day 1 of the course, under the Assessment tab.

Assessment Task 3

Short Essay

Based on your wider reading and research, select examples of recent government policies that highlight arguments for expanding, maintaining, or reducing the government's role in society. In your essay, examine how these policies reflect different perspectives on the role of government in addressing public needs, economic challenges, and societal issues.

In your 1200-word essay, aim to:

1. Clearly explain each policy example, including its goals, implementation, and the rationale behind it.
2. Analyse how each policy aligns with the idea of either expanding, maintaining, or reducing government involvement.
3. Discuss the implications of these policies for various sectors of society, such as households, businesses, and vulnerable populations.
4. Explore the arguments from different stakeholders and perspectives, such as political parties, economic experts, or advocacy groups.
5. Conclude by reflecting on whether the role of government in Australia is evolving and the potential future trajectory based on current trends.

Your essay should draw on a range of sources and demonstrate critical thinking, supported by real-world examples of policy changes or debates in areas such as healthcare, taxation, social welfare, environmental regulation, or economic management.

Full details and rubric will be available on the Wattle course page by Day 1 of the course, under the Assessment tab.

The ANU College of Asia and the Pacific’s Word Length and Excess Word Penalty Guidelines applies to this assessment item and can be found here.

Assessment Task 4

Critical Research Essay In Public Finance

This assignment asks you to write a critical research essay on any topic within the field of Public Finance. The essay should explore the chosen topic in depth, providing a balanced, well-researched, and analytical discussion of key issues. The aim is to critically evaluate policies, theories, or practices in public finance and present a coherent argument that demonstrates your understanding of the topic. The essay is 3,500 words. The ANU College of Asia and the Pacific’s Word Length and Excess Word Penalty Guidelines applies to this assessment item and can be found here.

You are free to choose any topic within the broad domain of Public Finance. Examples of potential topics include (but are not limited to):

• Tax policy and income inequality
• The role of fiscal policy in economic stabilization
• Public debt and its economic implications
• The economics of public goods and externalities
• Government spending on healthcare or education
• The impact of subsidies and transfers on economic behavior
• The political economy of taxation
• Social welfare programs and fiscal sustainability

Full details and rubric will be available on the Wattle course page by Day 1 of the course, under the Assessment tab.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students