The government wishes to determine whether increasing the price of HEALTHEQ, for the benefit of a fall in the price of SCHEXPEQ, would be good for poverty.

1. Compare the distributive cost/benefit of changing the price of each of HEALTHEQ and SCHEXPEQ.

2. Check whether the reform is good for poverty for ratios of MCPF ranging from 0.5 to 2.0.
    

Answer

• After choosing the appropriate variable(s), click on  the button OK.

RECALL

STEP 2: Use the DAD Application: DOMINANCE|INDERECT TAX DOMINANCE

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

RESULTS