User Account

All Pages

ECON403, Public Economics

Assignment Help:
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?

Related Discussions:- ECON403

Side payments, 3 voters, A, B, and C, will decide by majority rule whether ...

3 voters, A, B, and C, will decide by majority rule whether to pass bills on issues X and Y. Every of the two issues will be voted on indiviually. The change in net profits (in dol

Model without stock effects, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Over-exploitation of resources, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Fiscal federalism, principles of multi unit finance

principles of multi unit finance

Flaws in conventional system - inconsistent treatment, Flaws in Convention...

Flaws in Conventional System -  Inconsistent Treatment Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftIntern

#title.HISTORY AND STRUCTUREOF NIGERIAN ECONOMIC., NIGERIA IS A COUNTRY WIT...

NIGERIA IS A COUNTRY WITH DUTCH DISEASE DISCUSS

Size maximizing, why-this-behavior-consistent-with-size-maximizing-governme...

why-this-behavior-consistent-with-size-maximizing-government

Multi unit finance, what are the principles of multi unit finance and princ...

what are the principles of multi unit finance and principles of grant design

Flaws in conventional system - focus, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Related goods approaches - indirect substitute approach, Related Goods Appr...

Related Goods Approaches - Indirect Substitute Approach Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInter

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd