box assignment

Governments have different alternatives to finance its expenditures, transfers, and special programs; these are: taxes, royalties, tariffs, and debt. But among taxes, which would be the more efficient way? Here efficient means less distortionary, in the sense that interferes the least with households’ and firms’ decisions. Taxes on capital reduce investment, output and wages, but it seems that taxes on labor income would not, since households’ choice of hours of work have more to do with preferences than with prices (i.e. wages). Research focus: how should a government balance its tax intake among capital, labor, and consumption taxes?

When writing a box target around 1000 words. The box has to introduce the topic, develop it, draw conclusions, provide sources of information, and references for further reading (when applicable).

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In summary, boxes should inform the reader about what is the question/situation under study; why is it important; what is the theoretical basis; what is the appropriate data to use; and leave them with a clear conclusion. Also, all charts should have a title and have the axis labeled (variable(s) name and units). Key words for good writing are: clarity, conciseness, continuity, and cadence.