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Economic Growth and Distributive Justice Part II - Maximize Social Wellbeing

Approx. 7 hours to complete

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Course Summary

Learn about the factors that contribute to economic growth and the policies that can be implemented to promote it. This course covers a range of topics including human capital, financial development, and trade.

Key Learning Points

Understand the importance of human capital in economic growth
Explore the role of financial development in promoting economic growth
Learn about the impact of international trade on economic growth

Learning Outcomes

Ability to analyze the factors contributing to economic growth
Understanding of the policies that can be implemented to promote economic growth
Knowledge of the impact of international trade on economic growth

Prerequisites or good to have knowledge before taking this course

Basic understanding of economics
Comfort with mathematical concepts

Course Difficulty Level

Intermediate

Course Format

Online
Self-paced

Similar Courses

International Finance
Financial Markets

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Description

If you really care about the big questions in the economies and societies of the 21st century, such as distributive justice - namely, inequality of income or wealth, and its correlation with economic growth - this course is meant for you. The knowledge you will gain can truly change your outlook on our world.

"Economic Growth and Distributive Justice - Maximizing Social Wellbeing" is the second part of a two part course and it includes the following five lectures: (1) The excess burden of taxation (2) Tax incidence: who bears the economic burden of tax? (3) Progressivity: definition and ways to achieve (4) Low Income, Low Ability and the Optimal Income Tax Model (5) Designing the Tax and Transfer System that Maximizes Social Wellbeing If you haven't done that already, we strongly recommend that you register for the first part of the course: "Economic Growth and Distributive Justice - the Role of the State". Taking both parts of the course would enable you to obtain a fuller and more comprehensive knowledge about Economic Growth and Distributed Justice. The course is founded upon the elemental idea that the role of the state is to maximize the well-being - or simply the happiness - of its residents. In 9 fascinating, edifying lessons, using only simple words and decoding professional terminologies that sometimes baffle the intelligent layman, the course expounds many truths – both intuitive and unintuitive. Often using examples from the US and Europe, it does not however focus on policies in any particular region of the world, and is directly applicable to all countries around the globe. The course touches upon the essence of important concepts like efficiency and equity, inequality and poverty, gross domestic product, tax evasion and tax planning; it presents the work of Nobel Laureate James Mirrlees and his followers - promoting a coherent system that integrates tax and government expenditures to maximize social welfare; and illuminates a range of high-profile issues from their economic angle: • Climate change: the atmosphere and oceans as public goods, and how smart (Pigovian) taxation can be used to combat the rapidly increasing threats to our planet; • Technology as the engine of economic growth; • Taxing the rich: How can we mitigate the growing inequality problem? Should we impose a global tax on capital? The curriculum includes interviews with major figures in the fields of law and of economics: Harvard's Elhanan Helpman, Dan Shaviro from NYU and Richard Epstein from the University of Chicago and NYU. After successfully completing this course, you can expect to be able to: • better understand economic issues presented in the media • form an informed opinion on the strengths and weaknesses of presented social economic policies • define and measure inequality and poverty • define the connection between inequality (income, wealth) and economic growth • explain the foundations of economic growth • design a tax and transfer system to maximize the happiness of individuals All these will allow you to better understand the policies being developed around you, and to play a larger, more informed role in their development, as a conscientious citizen. In order to receive academic credit for this course you must successfully pass the academic exam on campus. For information on how to register for the academic exam – https://tauonline.tau.ac.il/registration Additionally, you can apply to certain degrees using the grades you received on the courses. Read more on this here – https://go.tau.ac.il/b.a/mooc-acceptance Teachers interested in teaching this course in their class rooms are invited to explore our Academic High school program here – https://tauonline.tau.ac.il/online-highschool This course is a direct extension of the first part "Economic Growth and Distributive Justice Part I -The Role of the State", so if you have not yet taken it, we highly recommend you start your learning from there (https://www.coursera.org/learn/economic-growth-part-1/home/welcome).

Outline

The Excess Burden of Taxation
Course promo
Introduction
1.1 Social Efficiency: Consumer/Producer Surplus
1.2 The Excess Burden of Taxation: Administrative and Compliance Costs, Evasion and Planning
1.3 Excess Burden: The Change in Relative Prices
1.4 Measuring the Excess Burden of Tax: Focusing on Consumer Surplus
1.5 Measuring the Excess Burden of Tax: Focusing on Producer Surplus
1.6 Measuring the Excess Burden of Tax: Consumer and Producer Surplus
Before we begin
Recommanded Books
Recommended Reading - Week 1
week 1

Tax Incidence: Who Bears the Economic Burden of a Tax?
2.1 The Law Cannot Determine Who Will Bear the Tax Burden
2.2 Examples of Specific Taxes and Subsidies and their Unintuitive Burden
2.3 What Determines the Tax Incidence?
2.4 Elasticityof Capital Supply Assuming full Mobility Across Borders
2.5 Who Bears the Burden of Corporate Tax: Shareholders ?
2.6 Who Bears the Burden of Corporate Tax: Employees? Consumers? All Capital Owners?
Recommended Reading - Week 2
week 2

Progressivity: Definition and Ways to Achieve
3.1 How Does the Government Redistribute Income?
3.2 Redistributing Income Using Increasing Marginal Tax Rates
3.3 Achieving Progressivity Through Tax System without Increasing Marginal Tax Rates
3.4 Achieving Progressivity with a Deduction
3.5 Achieving Progressivity with a Grant (or Public Good)
Recommended Reading - Week 3
week 3

Low Income, Low Ability and the Optimal Income Tax Model
4.1 An Integrated View of the Tax and Transfer (welfare) Systems
4.2 Low Income Levels are Often Subject to Very High Marginal Tax Rates
4.3 An Interview with prof. Dan Shaviro
4.4 Taxing Ability, Not Income: “Tagging” and Transfers In-Kind
4.5 Taxing Ability, Not Income: Welfare Ordeals
4.6 Designing an Optimal Tax and Transfer System: The Model's Intuition
4.7 Understanding the Intuition of the Optimal Income Tax Model: No Government Intervention
Recommanded Reading - week 4
week 4

Designing the Tax and Transfer System that Maximizes Social Wellbeing
5.1 Designing an Optimal Tax and Transfer System: Flat Tax and a Grant
5.2 The Mirrlees Optimal Income Tax Model: Non-Linear Tax and a Grant
5.3 Demonstrating Why a High Marginal Tax Rate at Low Income Level is Optimal
5.4 High Marginal Tax Rates at High Income Level: Patterns of Wealth Distribution, Elasticity, Tax Planning and International Tax Competition
5.5 Richard Epstein Talking about the Risks Involved in Tax-Coerced Massive Redistribution
5.6 Discussing Thomas Piketty’s Book “Capital in the 21st Century”: Taxation of Capital; High Inequality as a Threat to Democracy
Conclusion of Part II
Recommended Reading - Week 5
week 5
Final exam

Summary of User Reviews

This course on economic growth has received positive reviews from many users. They enjoyed the in-depth analysis and real-world examples provided by the instructor. Overall, users found this course to be informative and engaging.

Key Aspect Users Liked About This Course

Many users thought the course provided valuable insights into economic growth and development.

Pros from User Reviews

Instructor provides clear explanations and examples
Course content is relevant and up-to-date
Real-world case studies help to illustrate concepts
Challenging assignments that reinforce learning
Great for students and professionals looking to deepen their knowledge of economic growth

Cons from User Reviews

Some users found the pace of the course to be too slow
Not suitable for beginners with no prior knowledge of economics
Course material can be dense and difficult to digest
Limited interaction with instructor or other students
Some users found the course to be too theoretical and lacking in practical applications

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Economic Growth and Distributive Justice Part II - Maximize Social Wellbeing

The knowledge you will gain can truly change your outlook on our world. (1) The excess burden of taxation (2) Tax incidence: who bears the economic burden of tax?...

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