Public Finance

after-tax allocation amount analysis apples argue assume Bart behavior billion budget constraint capital Chapter commodity consider consumer surplus consumption corporate decisions deduction demand curve depends discussion dollar earnings econometric economists effect elasticity equal Equation equilibrium example excess burden expenditures externality fig leaves Figure firms free rider problem Hence horizontal important incentives income distribution income tax increase indifference curve individuals investment labor supply leisure levied marginal benefit marginal cost marginal rate marginal tax rates maximize measured ment net wage optimal optimal tax output Pareto efficient payments percent Pigouvian tax pollution preferences present value problem produce property tax public finance purchase quantity rate of return received reduce requires Social Security social welfare function spending subsidy supply curve Suppose tax incidence tax liability tax system taxation theory tion unit utility vote voter wage welfare economics workers