Economics

Visualizing Tax Incidence with Shiny

As I have mentioned in other posts, this semester I trying to maximize the number of intuitive visualizations for my students to master economic and mathematical concepts more in my teaching, as well as develop my own R skills. For my intermediate microeconomics course, I recently put together an interactive Shiny App with R that demonstrates the effect of a tax on consumers and producers. Simply input your own (inverse) demand and supply functions and the size of the tax, and the graph and summary will update with the market equilibrium and the surpluses lost by the tax.