This open problem appeared on the bulletins of Evans Hall at Berkeley this week. I hope this doesn't violate StackExchange policy (the solution carries a $500 prize), but I thought why not re-post ...
Suppose you have two countries A and B, with a tax rate $T_A$ and $T_B$, respectively. The tax is redistributed to all people equally. Hence if you live in A and you make $I$ as income then you will ...
Often in my studies (economics) the assumption of a "well-behaved" function will be invoked. I don't exactly know what that entails (I think twice continuously differentiability is one of the ...