This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Take-Home Midterm EVEN-ODD-ODD 1 Take-Home Midterm EVEN-0DD-ODD This exam is take-home, open-book, open-notes. You may consult any published source (cite your references). Other people are closed. The exam you turn in should be your own personal work. Do not discuss with classmates, friends, professors (except with Prof. Starr or Ms. Fried — who promise to be clueless), until the examination is collected. 1 Consider the general competitive equilibrium of a production economy with redis- tributive taxation of income from endowment. Half of each household’s income from endowment (based on actual endowment, not net sales) is taxed away. The proceeds of the tax are then distributed equally to all households. We then have, M i ( p ) = p · ( . 5 r i ) + summationdisplay j ∈ F α ij p · y j + T, where T is the transfer of tax revenues to the household, T = (1 / # H ) summationdisplay h ∈ H p · ( . 5 r h ) ....
View Full Document
This note was uploaded on 11/30/2011 for the course ECON 311 taught by Professor Zambrano during the Fall '08 term at Cal Poly.
- Fall '08