Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Thursday, August 18, 2005

Gasoline Taxes and Gasoline Prices

Aaron Braaten at Grandinite has a very thorough discussion of the share of gasoline prices accounted for by taxes. The correct formula, as he points out, is neither linear nor constant. Here is his graph:

Aaron is in Alberta, and so his calculations refer to Alberta prices and taxes. In his article, he points out that blaming the high gasoline prices on gubmnt taxes is probably too strong at best and possibly incorrect, depending on the context.

Too bad he hasn't learned how to spell "gubmnt" yet.

Grandinite is a good blog. I've added it to my list.

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