Optimal Income Taxation:What is the utility of Pawnee residents and Eagleton residents at the social optimum
Optimal Income TaxationAfter Pawnee and Eagleton merged to become Pawgleton, Leslie Knope was taskedwith redesigning the income tax system for Pawgleton residents. Residents from Ea-gleton are more productive than Pawnee residents. Specifically, Eagleton residentshave the following production functionyE = 2l,while Pawnee residents have production functionyP = l.In other words, Eagleton residents can produce twice as … Read more