What is the consequence of a highly responsive supply of labor hours for the excess burden of
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What is the consequence of a highly responsive supply of labor hours for the excess burden of an income tax on wages? Show that a low elasticity implies that workers bear most of the income tax on wages.
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The responsiveness of labor supply to changes in wages is measured by the elasticity of labor supply Elasticity measures the percentage change in one variable in this case labor supply in response to ...View the full answer
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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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