Theories of Taxation 2 (2020) C.C. Yang This is a course on advanced theories of taxation. I will mainly focus on (i) dynamic issues of taxation and (ii) optimal Mirrleesian taxation. The following are tentative readings：

1. Dynamic tools and ideas Heer & Maussner, 2009, Dynamic general equilibrium modeling, 2nd edition, chapter 1. Ljungqvist & Sargent, 2012, Recursive macroeconomic theory, 3rd edition, chapter 1. 2. Complete and incomplete markets Ljungqvist & Sargent, 2012, Recursive macroeconomic theory, 3rd edition, chapters 8-9 and 17-18. 3. Optimal taxation Chari & Kehoe, 1999, Optimal fiscal and monetary policy, in Handbook of Macroeconomics, Volume 1. Ljungqvist & Sargent, 2012, Recursive macroeconomic theory, 3rd edition, chapter 16. Saez, 2001, Using elasticities to derive optimal income rates, Review of Economic Studies 68. Scheuer & Werning, 2017, Taxation of superstars, Quarterly Journal of Economics 132. Salanie, 2011, Economics of Taxation, 2nd Edition, Chapter 4. Razin & Sadka, 2018, International with flexible prices, NBER working paper. Rasin & Sadka, 2018, Financial globalization and the welfare state, NBER working paper. Ales, Kurnaz & Sleet, 2015, Technical change, wage inequality, and , American Economic Review 105. Ales & Sleet, 2016, Taxinf top CEO incomes, American Economic Review 106. Scheuer & Werning, 2016, The taxation of superstars, Quarterly Journal of Economics 132. Hsu & Yang, 2013, Optimal linear and two-bracket income taxes with idiosyncratic earnings risk. Journal of 105. Heathcote, Storesletten & Violante, 2017, progressivity: an analytical framework, Quarterly Journal of Economics 132. Chari, Nicolini & Teles, 2016, Optimal capital taxation revisited, mimeo. Chari, Nicolini & Teles, 2018, Ramsey taxation in the global economy, CEPR working paper. Borri & Reichlin, 2018, Wealth taxes and inequality, CEPR working paper. Wolff, 2019, Wealth taxation in the United State, NBERR working paper. Costinot & Werning, 2018, Robots, , and Luddism: A sufficient statistic approach to optimal technology regulation, NBER working paper. Nal of Guerreiro Rebelo & Teles 2018, Should robots be taxed? Mimeo. Jones, 2019, Taxing top incomes in a world of ideas, NBER working paper. Trabandt & Uhlig, 2011, revisited, Journal of Monetary Economics 58. Jaimovich & Rebelo, 2017, Nonlinear effects of taxation on growth, Journal of Political Economy 125. Sachs, Tsyvinski & Werquin, 2020, Nonlinear and optimal taxation in general equilibrium. Econometrica 88. Kleven, 2020, Sufficient statistics revisited. NBER working paper. 4. Labor supply Saez, Slemrod & Giertz, 2012, The elasticity of with respect to marginal tax rates: a critical review, Journal of Economic Literature 50. Keane, 2011, Labor supply and taxes: a survey, Journal of Economic Literature 49. Boppart & Krusell, 2016, Labor supply in the past, present, and future: a balanced-growth perspective. CEPR discussion paper. Duernecker & Herrendorf, 2017, On the allocation of time – a quantitative analysis of the roles of taxes and productivities. CEPR discussion paper. Chan and Moffit, 2018, Welfare reform and the labor market. NBER working paper. Chang, Kim, Kwon & Rogerson, 2018, Individual and aggregate labor supply in heterogeneous agent economies with intensive and extensive margins, NBER working paper. Bick, et al, 2019, Why are average hours worked lower in richer countries? NBER working paper. 5. Consumption and saving Attanasio & Weber, 2010, Consumption and saving: models of intertemporal allocation and their implications for public policy, Journal of Economic Literature 48. Cocco, Gomes & Maenhout, 2005, Consumption and portfolio choice over the life cycle, Review of Financial Studies 18. Tischbirek, 2019, Long-term government debt and household portfolio composition, Quantitative Economics 10. Fuster, Kaplan and Zafar, 2018, What would you do with $500? Spending responses with gains, losses, news and loans. NBER working paper. Jakobsen, Jakobsen, Kleven, & Zucman, 2018, Wealth taxation and wealth accumulation: theory and evidence from Denmark. NBER working paper. Gomes et al. Household finance, 2020, CEPR working paper. 6. Investment Ljungqvist & Sargent, 2012, Recursive macroeconomic theory, 3rd edition, chapter 13. Altug & Labadie, 2008, Asset Pricing for Dynamic Economies, chapters 10-11. Zhang, 2017, The investment CAPM, NBER working paper. Hou, Mo, Xue & Zhang, 2018, The economics of value investing, NBER working paper. Hanlon & Heitzman, 2010, A review of tax research, Journal of Accounting and Economics 50. 7. Fiscal shocks Ramsey, 2019, Ten years after the financial crisis: what have we learned from the renaissance fiscal research? NBER working paper. 8. Market interventions Boar & Midrigan, 2019, Markups and inequality, NBER working paper. 9. Behavioral public economics Bernheim & Taubinsky, 2018, Behavioral public economics. NBER working paper. Chetty, 2015, Behavioral economics and public policy: a pragmatic perspective, AER. Beshears, Choi, Laibson & Madrian, 2018, Behavioral household finance, NBER working paper. Reif, 2018, A model of addiction and social interactions. NBER working paper.