Question: New York Times columnist David Brooks wrote that In the
New York Times columnist David Brooks wrote that “In the private sphere, . . . , seniors provide wonderful gifts to their grandchildren, loving attention that will linger in young minds, providing support for decades to come. In the public sphere, they take it way” [ Brooks, 2010]. How does this observation relate to the Ricardian equivalence model?
Answer to relevant QuestionsConsider 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 ...Suppose that five states reduce income taxes in a given year. You are interested in estimating whether the tax cut has increased saving, and you find that the saving rate for residents of these five states increased by 2 ...Zach lives two periods. He earns $ 10,000 in the first period and nothing in the second period. The rate of return is 10 percent, and there is an income tax (applied to labor and interest earnings) of 50 percent. Zach ...Li- Na and Shirley both live two periods. Both have earnings of 1,000 in the present and zero in the future. The interest rate is 8 percent. Suppose that they are each subject to an income tax, and Li- Na’s first period ...Assume that the towns of Belmont and Lexington have different demand curves for firefighters and can hire firefighters at the same constant marginal cost. Suppose that historically their state government has required the two ...
Post your question