Questions tagged [public-economics]
Public economics (or economics of the public sector) is the study of government policy through the lens of economic efficiency and equity.
6
questions
38
votes
3
answers
2k
views
Is a universal basic income possible in the United States?
Is a universal basic income or unconditional demogrant possible in the United States? (For the sake of specificity I have focused the question on the US, though the question is certainly interesting ...
- 9,345
33
votes
6
answers
3k
views
What benefits do governments receive from not eliminating debt?
Most major economies have substantial government debt; for example among the OECD countries the lowest debt rate is Estonia with around 6% of GDP. Now we may be in a global recession at the moment, ...
- 626
20
votes
5
answers
2k
views
Unemployment and the Minimum Wage---what are the main counter-arguments to Card and Krueger?
Card and Krueger's paper (AER 1994, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania") uses a difference-in-difference identification strategy to ...
- 9,345
1
vote
1
answer
94
views
Is it possible to pay the internal debt of the country and to cover the budget deficit by increasing taxes?
Say for example the US govt. is putting an extra tax of 10% on the incomes of the people earning more than the average income. To make it easier, only tax the people earning more than 110% of the ...
- 972
4
votes
1
answer
267
views
How can I show convexity of this value function?
I have set up an optmization problem as follows:
$$V(A)=\max_{l, C} \quad u(C,l)$$
Where the only constraint is as follows:
$$C=f(l,A)$$
Here $u$ is the utility function which captures social welfare. ...
- 183
3
votes
1
answer
147
views
The optimal tax rate
According to a famous formula (due I believe to Saez), the optimal maximum tax rate $\tau^*$ is given by
$$ \tau^* = \frac{1 - \bar{g}}{1 - \bar{g} + ae}$$
where $g$ is the 'average social marginal ...
- 874