Let’s build a house…

Here’s a strange house… why might it have been built this way?

Have a think before scrolling further down for some hints…

And then if you really get stuck… see one important suggestion right at the bottom of this page!

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Think of different approaches: could it be due to aesthetic reasons? It could be. But the answer is not that interesting if that’s the only reason for it. And it certainly wouldn’t make it into our Academic Curiosity blog!

So could it be political reasons? practical reasons? institutional reasons…? Hint hint: what kind of institution might make someone design a house like this…

What kind of government policy might be in place that would motivate someone to build a house like this?

ANSWER: THE TAX SYSTEM. One of the effects of a complicated tax system is how it distorts incentives. Read the answer here.