WWS 300 Lecture Notes - Lecture 6: Incentive Compatibility
2 Mar 2020
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Slide: compute the elasticity of labor supply. Computations to analyze the choice of an individual when they face a budget of this sort. Choice: we choose it by maximizing utility with budget constraints. Slide: compute the elasticity of labor supply (continued) You max revenue when the turn you adhere is just equal to 1. When you increase your tax rate, nothing happens to your revenue. You have this when you solve for the equation. Jill funds the lump sum transfer to jack.
