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 level? > (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 the > I. level. > > I don't see how i. and s. effects teach nominal and real income but > am willing to be enlightened. > > c) is possible but it means that teaching i. and s. effects is a > waste for most students. > > Surely there are enough useful things to teach that are also difficult? > 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 time > (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: http://mason.gmu.edu/~atabarro/ > > and > > Director of Research > The Independent Institute > 100 Swan Way > Oakland, CA, 94621 > Tel. 510-632-1366 > > > > > -- NeoMail - Webmail
