Russian taxation system is cumbersome, complicated and inefficient. It is quite a challenge to the economic development of Russia. The discussions on that subject have been very lively in recent years but one can see the lack of theoretical background in those discussions.

This course allows students to look at taxation from the viewpoint of economic theory (with special attention to microeconomic models): economic fundamentals of taxation, basic types of taxes and basic problems of taxation. Students would be able to observe the effects of income and substitution through the analysis of influence of taxes on the investment policies of firms and on the economic behavior of households. During the examination of problems of tax policy special emphasis is placed on the costs of tax administration process.

This taxation theory course is particularly essential for students specializing in public finance and public administration.