财政学课本习题答案（第8版）chapter_18

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1、Part5-TheUnitedStatesRevenueSystemChapter18—PersonalTaxationandBehavior1.Thesupplyoflabor(andotherfactors)inandoutofacityismoreelasticthanthesupplyoffactorstothenationasawhole.Therefore,anincometaxreductionatthecitylevelislikelytoloselessrevenuethansuchareductionatthefederallevel,ceteri

2、sparibus.Justasonecanthinkof"welfare-inducecTmigrationforpoorhouseholds,onecanthinkof"tax-induced^migrationforbusinessesandpossiblyworkers-Ifthecitylowerstaxrates{andothercitiesdonotrespondaccordingly),thenoneimaginesthatanumberofbusinesseswillenterthatstateandspureconomicactivity.2.ABL

3、eisureIfindividualsviewtheirlossinthelaborincometaxesasoffsetbythebenefitsofpublicservices,laborsupplyfallsbyABhours.Thisisthecompensatedchangeinhourswithrespecttoachangeinthenetwagerate.4.Theeffectofthechangeinthehighestmarginaltaxrateontheindividuafsbudgetconstraintisdemonstratedbelow

4、:Theresultingchangeinthetaxratemovespartofthebudgetlineouttothenew,dottedbudgetconstraint.Thispolicyhasaneffectonlaborsupplyanalogoustotheeffectofanincreaseinanindividuafswagerateonlaborsupply:itistheoreticallyambiguous.Thereasonforthisambiguityisthattherearetwocompetingeffects一asubstit

5、utioneffectwhichactstodecreaseleisure,andanincomeeffectwhichincreasesleisure.Thedecreaseinthetaxratemakesleisuremoreexpensive,sothesubstitutioneffectdictatesthatlessofitistobeconsumed・However,thereisextraincomeprovidedbythistaxcut,andtheincomeeffectmakestheindividualwanttoconsumemorelei

6、sure.Thesetwocompetingeffectsmaketheoverallchangeinlaborsupplyambiguous.Existingempiricalworksuggeststhatforprimeagemales,theincomeandsubstitutioneffectsmoreorlesscanceleachotherout.Forworkingwives,thesubstitutioneffectdominates,meaningthatthereductioninmarginaltaxrateswouldtendtoincrea

7、setheirlaborsupply.Theeffectonsavingscanbedemonstratedusingadiagramillustratingthechangeintheintertemporalbudgetconstraintthatresultsfromthistaxchange:FutureConsumptionThepolicymovestheendowmentpointfrompointEtoEanditchangestheslopeoftheintertemporalbudgetconstraint,whichisequ