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Unformatted text preview: 1 + i = U i U l F l F i in other words the optimal wedge must satisfy 1 + i = 1 + -H l 1 + -H i There you go! If H i > H j , then it is optimal to tax good i more than good j . The problem is that, it is not very helpful. Unfortunately, without imposing assumption on U we cannot say much more. Next we consider some special (yet, interesting) cases. 6...
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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