knowing what i and s effects are all about teaches people to evaluate 
which types of tax cuts will entail higher production - and which types 
of tax cuts will do the reverse...

jacob braestrup
danish taxpayers association

>    So far we have that i. and s. effects are useful to
> a) teach Marshallian demand
> b) teach difference between nominal and real income
> c) students going on to graduate school
> d) useful but for reasons that can't be remembered! :)
> e)  useful as a hurdle/signal
> f) not useful at the intermediate/mba level
>     Regarding Marshallian demand this is true but just raises the 
> question what is the use of Marshallian demand at an intermediate 
>  (Note almost all textbooks discuss i. and s. effects but most do not 
> teach M. demand.)  As I said in my post, for welfare analysis, income 
> and substitution effects become important but this is not taught at 
> I. level.
>     I don't see how i. and s. effects teach nominal and real income 
> am willing to be enlightened.
>       c) is possible but it means that teaching i. and s. effects is 
> waste for most students.
> Surely there are enough useful things to teach that are also 
>  thus i. and s. effects is not needed for the hurdle.
>     Thus the bulk of the posts, and a number I have received offlist, 
> increase in my mind the hypothesis that this material is a waste of 
> (relative to other things that could be taught).
> Alex
> -- 
> Alexander Tabarrok 
> Department of Economics, MSN 1D3 
> George Mason University 
> Fairfax, VA, 22030 
> Tel. 703-993-2314
> Web Page: 
> and 
> Director of Research 
> The Independent Institute 
> 100 Swan Way 
> Oakland, CA, 94621 
> Tel. 510-632-1366 

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