Michael Hurst
1 min readAug 16, 2020

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Good job. For the layperson you might have added a little more explanation of what an elasticity really means.

And I'm confused about the subscripts.You have four "e" parameters: e1, which is supply side labor elasticity; e2, which is tax avoidance elasticity; and e3, which is bargaining elasticity, and then there is e, which you never define. I assumed this must be an overall elasticity, but I can't derive this from your description. If e3, for example, means that a CEO will bargain less the higher the tax rate, then why is it in the numerator? And in your final formula, e1 disappears.

I can see you put a lot of effort into this. But it is still not clear. I'll seek out the article and see if I can figure it out. But this is important, so thanks for your efforts.

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Michael Hurst
Michael Hurst

Written by Michael Hurst

Economist and public policy analyst, cyclist and paddler, and incorrigible old coot.

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