Customer Service Chat
Get quote & make Payment
ECON403, Public Economics
Jack and Jill live alone on an island. Their labour supply schedules are identical and given by L = (1 - t)w, where t is the income tax rate and w denotes the wage. Jill''s wage is 6 and Jack''s is 2. The tax paid by an individual is twL and each receives a transfer equal to half the total revenues. Jack and Jill have identical utility functions given by U =C - (1/2)L2
, where C denotes consumption (the individual''s income after tax and transfer). If the social welfare function is W = 3Ujack + UJill, what is the optimal tax rate?
[Hint: Write W as a function of the tax rate t.] Why is the optimal tax rate not 0? Why is
it not 1?
Posted Date: 3/17/2013 9:01:37 PM | Location : Canada
Ask an Expert
ECON403, Assignment Help, Ask Question on ECON403, Get Answer, Expert's Help, ECON403 Discussions
Write discussion on ECON403
Your posts are moderated
Write your message here..
Valuation tools - related goods approaches, Normal 0 false fa...
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4
KALDOR-HICKS COMPENSATION PRINCIPLE, WHAT IS THE CONCEPT
WHAT IS THE CONCEPT
Identify appropriate economic policy, Examine issues and decisions using th...
Examine issues and decisions using the economic way of thinking; identify appropriate economic policy; communicate economics in written format Topic Upon finishing your d
Private & public goods, what do you understand by private & public goods. D...
what do you understand by private & public goods. Distinguish between private and public goods.
Economic growth, Define the concept of economic growth?
Define the concept of economic growth?
Valuation tools - travel cost method, Valuation Tools - Travel Cost Method ...
Valuation Tools - Travel Cost Method Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4
Example on uncertainty and the policy process, Q. Example on Uncertainty an...
Q. Example on Uncertainty and the policy process? For example, if it is expected that current government will be replaced in upcoming election, and the next government will be
Indifference curve.., concept of indifference curve
concept of indifference curve
Emerging issues affecting the role of government, Probelm 1: (a) What ...
Probelm 1: (a) What are the main roles of Government in the economic development of a country? (b) What are some of the emerging issues affecting the role of Government?
Samuelson condition, U=4X+G where X is private spending and G is public spe...
U=4X+G where X is private spending and G is public spending. what is the marginal rate of substitution between public and private
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.