Podcast
Questions and Answers
What is the excess burden defined as when considering salience effects?
What is the excess burden defined as when considering salience effects?
- Change in consumer surplus due to tax changes
- Loss in tax revenue minus consumer surplus
- Difference between income effects and tax revenue
- Difference between consumer surplus and tax revenue (correct)
In a simple model of taxation with no income effects and constant returns to production, what type of utility function is assumed?
In a simple model of taxation with no income effects and constant returns to production, what type of utility function is assumed?
- Quasilinear utility (correct)
- Quadratic utility
- Logarithmic utility
- Perfectly linear utility
In the context of welfare analysis with salience effects, what is the primary focus of modern literature?
In the context of welfare analysis with salience effects, what is the primary focus of modern literature?
- Introducing structural methodologies
- Deriving sufficient statistic formulas (correct)
- Analyzing perfect competition models
- Exploring general equilibrium theory
In the context of efficiency cost with salience effects, which curve is used to calculate the change in demand?
In the context of efficiency cost with salience effects, which curve is used to calculate the change in demand?
What role does the fully-optimizing agent play in the observed demands under salience effects?
What role does the fully-optimizing agent play in the observed demands under salience effects?
What does the government levy a tax on in the described scenario involving N goods?
What does the government levy a tax on in the described scenario involving N goods?
Which approach focuses on quasi-experimental techniques to implement 'sufficient statistic' formulas for welfare analysis?
Which approach focuses on quasi-experimental techniques to implement 'sufficient statistic' formulas for welfare analysis?
Which concept is central to understanding welfare analysis with salience effects?
Which concept is central to understanding welfare analysis with salience effects?
What does the fully rational consumer's reaction to tax changes imply about the tax curve?
What does the fully rational consumer's reaction to tax changes imply about the tax curve?
What term is used to define the sum of spending on numeraire, individual's utility, and tax revenue to measure the excess burden of a tax?
What term is used to define the sum of spending on numeraire, individual's utility, and tax revenue to measure the excess burden of a tax?
What is the focus of efficiency analysis in public economics?
What is the focus of efficiency analysis in public economics?
Why does the welfare of those taxed fall by more than $1 when the government raises taxes?
Why does the welfare of those taxed fall by more than $1 when the government raises taxes?
What two assumptions are made in the analysis of Marshallian surplus?
What two assumptions are made in the analysis of Marshallian surplus?
In the context of public economics, what is taxable income elasticity used to measure?
In the context of public economics, what is taxable income elasticity used to measure?
What is the primary reason for analyzing welfare with salience effects in public economics?
What is the primary reason for analyzing welfare with salience effects in public economics?
What is the main purpose of using sufficient statistics in welfare analysis?
What is the main purpose of using sufficient statistics in welfare analysis?
In the context of taxable income elasticity, what does Roy's identity indicate?
In the context of taxable income elasticity, what does Roy's identity indicate?
How is private surplus related to the concept of Marshallian Surplus?
How is private surplus related to the concept of Marshallian Surplus?
Which approach relies on applying the envelope theorem to derive the rate of change of social welfare loss caused by tax change?
Which approach relies on applying the envelope theorem to derive the rate of change of social welfare loss caused by tax change?
What is considered a sufficient statistic for calculating the rate of change of social welfare with respect to a tax parameter?
What is considered a sufficient statistic for calculating the rate of change of social welfare with respect to a tax parameter?
What did Feldstein propose as a sufficient statistic for calculating deadweight loss?
What did Feldstein propose as a sufficient statistic for calculating deadweight loss?
According to Feldstein, what is included in labor supply besides the choice of hours worked?
According to Feldstein, what is included in labor supply besides the choice of hours worked?
In the context of taxation, what does the formula Z = w1 l1 + w2 l2 - e represent?
In the context of taxation, what does the formula Z = w1 l1 + w2 l2 - e represent?
What did Kleven and Schulz use as their primary source of identification for elasticity in their study?
What did Kleven and Schulz use as their primary source of identification for elasticity in their study?
How did Saez propose to estimate the taxable income elasticity in his work?
How did Saez propose to estimate the taxable income elasticity in his work?
What is the impact on consumer surplus when the price-demand curve shows a positive surplus?
What is the impact on consumer surplus when the price-demand curve shows a positive surplus?
In the context of fully optimizing agents, what adjustment is necessary to calculate EB*?
In the context of fully optimizing agents, what adjustment is necessary to calculate EB*?
What is the efficiency cost without income effects in terms of excess burden when introducing a small tax?
What is the efficiency cost without income effects in terms of excess burden when introducing a small tax?
Which area represents the surplus before tax in the graphical analysis when supply is perfectly elastic?
Which area represents the surplus before tax in the graphical analysis when supply is perfectly elastic?
What does the line AH represent in terms of the impact of tax on quantity and price in the text?
What does the line AH represent in terms of the impact of tax on quantity and price in the text?
What is the effect of introducing a small tax on equilibrium quantity Q and on surplus?
What is the effect of introducing a small tax on equilibrium quantity Q and on surplus?
In the context of Marshallian Surplus, what does Excess Burden increase with?
In the context of Marshallian Surplus, what does Excess Burden increase with?
Which factor leads to a larger reduction in quantity according to the text?
Which factor leads to a larger reduction in quantity according to the text?
What is the relationship between Excess Burden and the elasticities of goods?
What is the relationship between Excess Burden and the elasticities of goods?
In welfare analysis with salience effects, what is the role of the fully optimizing agent in determining demands?
In welfare analysis with salience effects, what is the role of the fully optimizing agent in determining demands?
What approach focuses on quasi-experimental techniques for implementing 'sufficient statistic' formulas for welfare analysis?
What approach focuses on quasi-experimental techniques for implementing 'sufficient statistic' formulas for welfare analysis?
In the context of taxation with constant returns to production, what type of utility function is typically assumed?
In the context of taxation with constant returns to production, what type of utility function is typically assumed?
'Welfare Analysis' with salience effects primarily focuses on what aspect in modern literature?
'Welfare Analysis' with salience effects primarily focuses on what aspect in modern literature?
