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Oskar Lange



263: Hotelling hoped to be able to use mathematical theory to be able to
solve the problems of the great Depression.  In 1932, he published an
article in the Journal of Political Economy regarding the Egeworth
taxation paradox, which showed that the imposition of a tax on a
particular good could actually lower both its price and the price of a
related good.  It seemed to offer a serious challenge to the theory of
demand.

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx




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