Robert J. Barro attempted to elaborate on David Ricardo's proposal that these entities and loans are interchangeable because consumers internalize budget constraints. That idea is the Barro-Ricardo equivalence theorem. An alternative to one of these entities designed to correct a negative externality created by Arthur Pigou is a cap-and-trade syste
Robert J. Barro attempted to elaborate on David Ricardo's proposal that these entities and loans are interchangeable because consumers internalize budget constraints. That idea is the Barro-Ricardo equivalence theorem. An alternative to one of these entities designed to correct a negative externality created by Arthur Pigou is a cap-and-trade system. When introduced into an equilibrated market, they can cause deadweight loss by driving a "wedge" between consumers and producers. For 10 points, name these entities that come in Pigovian, estate, value added, sales, and income varieties, a percentage of a transaction that goes to the government.
Robert J. Barro attempted to elaborate on David Ricardo's proposal that these entities and loans are interchangeable because consumers internalize budget constraints.
taxes [Accept any kinds of taxes, like Pigovian taxes, income taxes, or sales taxes.]