Prospectus

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Tax Behavior

Course
2023-2024

Admission requirements

Students following this course are recommended to have completed at least one year of university education, not necessarily in law or economics. We expect the students to have a good proficiency in English both orally and in writing.

Description

1.1 Context
This course provides an introduction to the field of empirical legal studies. Traditionally, legal scholars in the field of tax law have conducted doctrinal research. Although this approach (sometimes referred to as ‘law in the books’) is vital to the development of legal theory, it tells us little about how the law actually works in society. Understanding how tax law works in practice is of vital importance for policymakers because it allows them to design tax policies that achieve their goals. Often, tax law is not only introduced to raise government revenue but to influence behavior as well. One example that has received a lot of media attention is Dutch corporate tax policy that aims to attract and retain corporate business activities. Another example is the sugar tax that was included in the new government’s coalition agreement. The question that arises is: How do such tax policies influence behavior?

This course introduces students to commonly applied methodological tools to tackle this question including both qualitative (e.g., interviews) and quantitative research methods (e.g., experiments). Students will explore the application of different research methods and study them ‘in action’ by exploring different themes in tax law such as:

  • Tax compliance: Why do people comply with the law despite the low risk of getting caught?

  • Corporate tax policy: How are business decisions influenced by tax policy?

  • Health policy: Are taxes an effective instrument to encourage people to make healthier choices?

1.2 Connection with the minor
The minor ‘tax and society’ is to familiarize students with the social impact of taxation. This course specifically addresses the behavioral effects of a selected number of themes in tax law and provides students with an understanding of the tools that can be applied to study the societal implications of tax policy.

1.3 Design of the course
This course consists of 5 seminars of 3 hours each. Each seminar will explore a different methodological tool and how it has been applied to study a particular theme of taxation. Each seminar will start by introducing a tax-related issue and a methodological tool that can be used to study this issue. The second part of the seminar will dive deeper into the application of the tool by analyzing a paper that describes research in taxation that has applied the relevant method. Hence, each seminar is structured as follows:

  • Introduction to a tax-related issue

  • Introduction to a methodological tool

  • Discussion of the application of the tool in practice

The methodological tools that will be discussed are:

  • Surveys

  • Experiments

  • Interviews

  • Regression analysis

  • Meta-analysis

Course objectives

At the end of the course, students:

  • Are aware of tax themes that are researched by empirical legal scholars

  • Have an understanding of commonly applied methodological tools

  • Are able to select an appropriate research method for empirical research questions in taxation

  • Understand empirical legal research

  • Are able to interpret and critically assess empirical legal research in taxation.

Timetable

Check MyTimetable.

Mode of instruction

This course consists of 5 seminars of 3 hours each. Each seminar will explore a different methodological tool and how it has been applied to study a particular theme of taxation. Each seminar will start by introducing a tax-related issue and a methodological tool that can be used to study this issue. The second part of the seminar will dive deeper into the application of the tool by analyzing a paper that describes research in taxation that has applied the relevant method.
Hence, each seminar is structured as follows:

  • Introduction to a tax-related issue

  • Introduction to a methodological tool

  • Discussion of the application of the tool in practice

The methodological tools that will be discussed are*:

  • Interviews

  • Surveys

  • Experiments

  • Regression analysis

  • Meta-analysis

  • This is a preliminary list that might be subject to change.

In preparation of the seminars, students will be asked to read one or two research articles and given some questions to think about in relation to the articles. The answers to these questions do not have to be handed in.

We encourage on campus attendance. Active participation is appreciated. A video recording of the lecture will be uploaded on Brightspace the day after the lecture.

There are no entry requirements and no prior knowledge is required.

Assessment method

5.1 Mode of assessment
Assignment (100%)

Students will be asked to write a short paper in which they:

  • Summarize the study

  • Explain the strengths and weaknesses of the study

  • Write recommendations

5.2 Procedure
Written via Brightspace (plagiarism check).

Reading list

  • Selection of papers (will be announced on Brightspace).

Registration

Registration for courses and exams takes place via MyStudymap. If you do not have access to MyStudymap (guest students), look here (under the Law-tab) for more information on the registration procedure in your situation.

Contact

  • Coordinator: Elody Hutten

  • Work address: KOG, Steenschuur 25, (melden bij het secretariaat B211)

  • Contact information: e.hutten@law.leidenuniv.nl

  • Phone number: +31 71 527 7840

Institution/division

  • Institute: Institute of Tax Law and Economics

  • Department: Tax Law

  • Room number secretary: B211

  • Opening hours: 9.00 – 14.00 hrs

  • Telephone number secretary: +31 715277840

  • Email: Belastingrecht@law.leideuniv.nl

Remarks