Microeonomic entry

  Today I learned something called deadweight loss. What that says is sometimes charging sales tax makes the ordinary people’s life worse off than simply charging them a lump sum tax of the same amount! That is with appropriate assumptions on the consumers’ demand preference or utility function.
   This is so far the most startling fact I have encountered in Mas-Colell, Whinston and Green. Other surprising facts require more mathematical sophistication to appreciate.
 
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About aquazorcarson

math PhD at Stanford, studying probability
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