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Tagged with optimal-taxation microeconomics
5 questions
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Difficulty understanding steps in optimal taxation derivations
I am replicating the derivations from the paper Environmental policy, public finance and the labour market in a second-best world (Bovenberg & van der Ploeg, Journal of Public Economics, 1994), ...
- 13
3
votes
0
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57
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Ramsey Optimal Tax
Suppose there are $n$ goods ($x_i$ with prices $p_i$) to be taxed with a sequence of ad valorem taxes whose rates are given by $t_i$. The total tax revenue is $T = \sum_{i=1}^{n} t_ip_ix_i$. For a ...
- 31
1
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1
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77
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Maximized tax revenue & foreign labor
I'm dealing with a tricky assignment, and I have no idea of where to begin.
Person 1 lives in Denmark and has a utility function given by,
$$(1) \ \ u(c,l)=c-\frac{\eta}{\eta+1}(24-l)^{\frac{\eta+1}{\...
- 25
4
votes
1
answer
297
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Paternalistic Government policies
A consumer with income $m$ has preferences $U(x , y) = x^a y^{1-a} $ where a is between 0 and 1. A paternalistic Government wants to regulate the choices of the consumer to maximize it's own welfare ...
- 131
3
votes
3
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381
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Why are there estate taxes after the owner passes away?
Isn't it unfair for estates to be taxed after death? The person who bequeathed the estate probably purchased it with after tax money, so wouldn't it then be taxed twice? What is the purpose of the tax ...
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