Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes

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Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes do not result in substitution effects, but they do affect prices. Is this a contradiction?

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Public Finance A Contemporary Application Of Theory To Policy

ISBN: 9780538754460

10th Edition

Authors: David N Hyman

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Question Posted: Aug 15, 2023 02:37 PM

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Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes

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Lumpsum taxes are unique in that they do not cause any efficiency losses and they are not associated with substitution effects This makes them an idea...View the full answer

Public Finance A Contemporary Application Of Theory To Policy

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