I appreciate this mode of reasoning but I think it fails here Use Bertrand if you like but UBI would result in a demand shock for a stock of goods that is close to fixed in the short term :/ Pretty generally a subsidy is won by the side of a market with lower elasticityhttps://twitter.com/yhdistyminen/status/1222899964440764416 …
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Replying to @eigenrobot
If a product is perfectly inelastic than the seller captures 100% of a *subsidy tied to that product* (eg a renter credit). However this doesn't apply to an unconditional cash transfer.
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Replying to @justjoshinyou13 @eigenrobot
You'd model that as an increase in demand, not clear how much it would be but people obviously buy stuff other than housing.
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Replying to @justjoshinyou13
oh absolutely simple as hell model
3:05 PM - 30 Jan 2020
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