The government has to observe a balanced budget, i.e. expenditures for public schooling equal tax revenues (v whub (1 - znub) Nt), where N represents the number of parental households in the economy. Derive the level of public edu- cation epub for a given tax v and explain this result.
The government has to observe a balanced budget, i.e. expenditures for public schooling equal tax revenues (v whub (1 - znub) Nt), where N represents the number of parental households in the economy. Derive the level of public edu- cation epub for a given tax v and explain this result.
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.11P
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