Consider two policies: 1) The government re-quires everyone to buy a standard health insurance policy that costs

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Consider two policies: 1) The government re-quires everyone to buy a standard health insurance policy that costs $ 5,000; 2) the government taxes everyone $ 5,000, but cuts taxes by $ 5,000 for anyone who buys the standard health insurance policy. Do these policies have different effects on the size of government?
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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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