"effect" in inglés with examples - Collocation dictionary inglés
- In addition, purchasing power from the price decline increases ability to buy (the income effect).
- This ruled out income effects as an explanation for the endowment effect.
- However, this price changes due to both the income effect and the substitution effect.
- One must also consider the income effect, which for tax policy purposes often needs to be assumed to cancel out in the aggregate.
- The book decomposes the change into the substitution effect and the income effect.
- The income effect is a phenomenon observed through changes in purchasing power.
- In the language of the economists, taxes have an 'income effect' and a 'substitution effect'.
- In other words his purchasing power is called the income effect.
- Initially, the income effect of the taxes makes the individual 'buy' less of all normal goods including leisure.
- This explains the negative income effect on consumption.
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