ECON-642 Public Economics: Discussion 6A

Description

Required Readings:

• Hindriks and Myles, Chapter 9, Sections 9.5-9.6 and Chapter 15, Sections 15.1-15.4.

ECON-642 Public Economics: Discussion 6A Discussion Questions: 

1. Using      your own words, explain why being inelastic implies carrying a bigger tax      burden.
2. Given      the very different levels of sales taxes across the U.S., doesn’t this      imply a considerable distortion of competition?
3. How      could you criticize Krugman’s explanation of the 2008 pre-election debate      on gasoline tax cut?