This preview shows page 1. Sign up to view the full content.
Unformatted text preview: h x h l =-f z f l It means that it is optimal to set z = 0 and not distort production eciency. For more on intermediate good taxation and production eciency see Diamond and Mirrlees ( 1971 ). 11...
View Full Document
This note was uploaded on 12/10/2011 for the course MAT 121 taught by Professor Wong during the Fall '10 term at SUNY Stony Brook.
- Fall '10