B. Consider a simple example of how single-peaked and non-single-peaked tastes over policy might naturally emerge in
Question:
B. Consider a simple example of how single-peaked and non-single-peaked tastes over policy might naturally emerge in a case where there is only a single dimensional issue. A voter has preferences that can be represented by the utility function u1x,y2 5 xy where x is private consumption and y is a public good. The only contributor to y is the government, which employs a proportional tax rate t.
Suppose y 5 dt.
a. Suppose an individual has income I. Write his utility as a function of t,
d, and I.
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: