FBPO - What does FBPO stand for? The Free Dictionary
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In particular, we can find the lump-sum tax, [T.sub.L], that will make the FBPO [c*.sub.L] ([gamma]) affordable for agent L.
It is easy to verify that with tax [T.sub.H] ([gamma]), the FBPO [c*.sub.H] ([gamma]) is affordable to agent H under the capital price [^.q]([gamma]).
The first observation we make in Figure 3 is that a whole segment of the FBPO
curve lies inside the IC set of the Second Best planning problem.