In the formula for excess burden given in Equation ( 15.3) , the tax is less than

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“In the formula for excess burden given in Equation ( 15.3) , the tax is less than 1. When it is squared, the result is smaller, not bigger. Thus, having t 2 instead of t in the formula makes the tax less important.”Comment.
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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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