This system should not be uniform unless the compensated own-price elasticity of demand is also uniform according to the inverse elasticity rule.
This system should not be uniform unless the compensated own-price elasticity of demand is also uniform according to the inverse elasticity rule. This system should have higher magnitude for substitutes rather than complements according to the Corlett-Hague rule. After the end of the Bretton Woods system, one form of this was suggested to reduce exchange rate volatility; that one is named for James (*) Tobin. The "incidence" of this describes who bears the burden of it. One form of them shifts equilibrium left by increasing price, thus causing a deadweight loss. Another form of this reduces negative externalities and is called Pigovian, and this quantity appears on the x-axis of the Laffer curve which demonstrates that there is an optimal amount of this to maximize revenue. For 10 points, name this system of fees, like those on capital gains and income, that people pay to governments.
This system should not be uniform unless the compensated own-price elasticity of demand is also uniform according to the inverse elasticity rule.
taxation [or taxes]