The top marginal tax rate was lowered from 90 percent to 70 percent in 1964. Following this

Question:

The top marginal tax rate was lowered from 90 percent to 70 percent in 1964. Following this change, the number of annual championship boxing matches increased substantially [Fetter, 2010]. Explain this phenomenon using the theory of labor supply. For championship level boxers, did the income effect or substitution effect dominate?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

Question Posted: