Exercise 8.22

Test the hypothesis that a small increase in secondary school fees combined with a decrease in primary school fees of the same total magnitude would not change the distribution of well-being in Peru.

Answer
STEP 1: Use the DAD Application: DOMINANCE|INDIRECT DOMINANCE TAX

 

  • After choosing the appropriate variable(s), click on  the button GRAPH d1,2.

STEP 2: Use the DAD Application: CURVES|CONCENTRATION CURVE

  • After choosing the appropriate variable(s) and parameters, click on the GRAPH button.

 

RESULTS