Matschke, Xenia (contributor) - 2005
, and export taxes. Raising the
per-capita tax is costly, i.e., in order to have a certain amount X available from the per …-
capita tax, the government has to raise an amount Lf(X) which exceeds X. Here, we can
2It is assumed that each individual has … enough income to consume all goods; i.e., corner solutions are
excluded.
COSTLY REVENUE-RAISING 5
think of the difierence Lf(X)¡X …