A simple model of an LDC focuses on the relationship between the rural and urban sector and on the effects of pricing on migration and on incentives within the rural and the urban sectors. Within this model, simple formulae for optimal pricing in the two sectors are derived, which relate the magnitude of taxes to parameters which are observable and to explicit value judgments concerning the relative weights attached to the welfare of those living...
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1982/08/31
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Рабочий документ департамента
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CPD8203
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1
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1
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2017/11/15
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Disclosed
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The town - versus - country problem : optimal pricing in an agrarian economy
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