Fairness, equity vs. efficiency

2 Pages
54 Views
Unlock Document

Department
Agriculture + Resrce Econ
Course
AREC 202
Professor
Christopher Goemans
Semester
Fall

Description
21 October Tobacco products are more inelastically demanded Reduction in quantity demanded w/ tax isn’t very large Cigarettes vs. Lamborghinis Same tax on both - $100K sales tax Height of the DWL triangle is the same for both The DWL is wider for Lambos More DWL when elastic goods are taxed Larger tax revenue comes from taxing necessities But is that fair? Taxing Lambos would be more fair, but would not raise as much money In Economics, there are a couple of principles that govern fairness E.g. taxation Benefits received principle E.g. toll bridge Those who receive the greatest benefits pay the highest
More Less

Related notes for AREC 202

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit