Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?
Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?
Chapter16: The Public Sector
Section: Chapter Questions
Problem 3SQ
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Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?
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