14.471/Fall 2012: PS 2: Solutions
October 30, 2012
Question 1
You are invited to a small tropical island nation to become a tax policy consultant, with particular respon
sibility for analyzing tax-induced distortions in labor supply. Sensing the opportuni
14.471: Fall 2012: PS4
Due on Friday December 7
November 25, 2012
1. Optimal Income Taxation - Numerical Exploration
This question asks you to solve the Mirrlees (1971) model numerically. Assume that an individuals utility
is given by
l2
U (c, l) = c
2
w
14.471: Fall 2012:PS3 Solutions
December 4, 2012
1. Commodity Taxation
Consider an economy consisting of identical individuals with preferences given by
U (x1 , x2 , l) = 1 log (x1 ) + 2 log (x2 ) + (1 1 2 ) log (1 l) .
Individuals supply labor, l, at a m
14.471: Fall 2012: PS4: Solutions
December 11, 2012
1. Optimal Income Taxation - Numerical Exploration
This question asks you to solve the Mirrlees (1971) model numerically. Assume that an individuals utility
is given by
l2
U (c, l) = c
2
where y = l and
14.471/Fall 2012
Problem Set 2
_
Due Date: Friday, October 12, 2012
1. You are invited to a small tropical island nation to become a tax policy consultant, with
particular responsibility for analyzing tax-induced distortions in labor supply. Since it is w
14.471/Fall 2012: PS 1: Solutions
September 24, 2012
Question 1
Assume that a consumers utility function is given by u (x1 , x2 , x3 ) = 1 log (x1 1 ) + 2 log (x2 2 ) +
3 log (x3 ) and that the consumer faces consumer prices q1 and q2 , with the price of
14.471 / Fall 2012
Problem Set 1 / Due 9/19/12
Question 1
Assume that a consumer's utility function is given by:
u(x1, x2, x3) = 1 log (x1 - 1) + 2 log (x2 - 2) + 3 log x3
and that the consumer faces consumer prices q1 and q2, with the price of good three
14.471/Fall 2012
Referee Report Exercise
_
Due Date: Wednesday, November 7, 2012
Imagine that the following paper has been submitted to a journal at about the level of
the Journal of Public Economics.
The Impact of the Earned Income Tax Credit on the Labo