Changes

Jump to navigation Jump to search

Talk:Coase theorem (view source)

Revision as of 01:11, August 15, 2009

832 bytes added ,  01:11, August 15, 2009
answer
Line 25: Line 25:     
:::: You present a fascinating problem.  I may try to use it as one or more exercises in my upcoming [[Economics Lectures]], unless you object.  I'll try to solve it today before you post your answer.--[[User:Aschlafly|Andy Schlafly]] 17:40, 14 August 2009 (EDT)
 
:::: You present a fascinating problem.  I may try to use it as one or more exercises in my upcoming [[Economics Lectures]], unless you object.  I'll try to solve it today before you post your answer.--[[User:Aschlafly|Andy Schlafly]] 17:40, 14 August 2009 (EDT)
 +
 +
:::: Each person works until they can afford leisure, and when the value of the leisure is as much as the after-tax gains from the work.  For the Hard Worker, that means he works ten days and then stops (due to the high rate of taxation).  For the Lazy Worker, that means he works until he earns 8 units to pay for leisure.  At the start he makes 2 units per day after taxes, but that drops and some math is required to calculate how many days more than 4 that he must work to earn 8 units pay for leisure.  (It is not entirely clear from the question that the leisure actually ''costs'' the workers money.)
 +
 +
:::: It gets more complicated as the workers burn through their savings with leisure, however, particularly with their unrealistically declining earning power.--[[User:Aschlafly|Andy Schlafly]] 21:11, 14 August 2009 (EDT)
Aschlafly
Anthony, Irenaeus, Siteadmin, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
125,911

edits

Retrieved from "https://www.conservapedia.com/Special:MobileDiff/692957"

Navigation menu