A. Suppose that there are N different legislative districts, each with an equal proportion of the population.
Question:
A. Suppose that there are N different legislative districts, each with an equal proportion of the population. Suppose for simplicity that all citizens are identical and that tax laws affect all individuals equally. Suppose further that all projects cost C, and that the total benefits B of a project are entirely contained in the district in which the project is undertaken.
a. How much of the cost of a project that is passed by the legislature do the citizens in district i pay?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
Question Posted: