Problems
Problems
This chapter provides a set of questions drawn from material presented in previous chapters. Most are designed to emphasize important points, and to illustrate practical examples of applied welfare analysis. A number of questions are quite long and are intended as assignments, while others are more suitable for tutorial exercises.
Keywords: compensating variation, distorting taxation, Hatta decomposition, marginal social cost of public funds, public good provision, revised shadow prices, shadow exchange rate, shadow prices, shadow value of government revenue, shadow wage, tax inefficiency
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