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Explain the distribution and efficiency aspects of these two strategies.
How should the tax vary over time? What should be the relative fine (tax) on emissions of the two gases?
Many economists worried that unless countries are required to reduce their levels of greenhouse gas emissions. Explain how greenhouse gas emissions might occur.
Explain why a system of joint implementation for reducing greenhouse gases is more efficient than if each country must reduce its pollution by a fixed amount.
What is the externality associated with an additional individual's driving on a congested road? How do tolls help alleviate this externality?
Describe the incidental of a regulation lowering the noise level surrounding the airport, that is, who benefits.
Assume there are two types of communities in the United States. Show diagrammatically that a regulatory scheme may be preferable to a system of fines.
Assume the government can regulate the amount of pollution control after it knows. Show what the level of pollution control will be in each situation.
Explain why subsidies for pollution abatement equipment, will not result in an efficient resource allocation.
What are the likely consequences of information externalities for the efficiency of resource allocutions?
Discuss the advantages and disadvantages of each of the remedies discussed in the text.
Recently, there have been several proposals to privatize the social security system. What arguments might be put in favor or against doing this?
Discuss what organizational form you think might be appropriate for each of the following. In each case discuss problems of designing appropriate incentives.
There have been recurrent proposals for education voucher schemes. What do you see as the advantages and disadvantages of these voucher schemes?
What differences in the nature of the services provided might account for these differences?
What would be the advantages and disadvantage of doing contract? Recently, however, many communities have contracted to have their prisons run by private firms.
Discuss the extent to which each of the proposals is aimed at remedying particular market failures.
Separate out the positive statements from the normative statements. To what extent are the disagreements attributable to differences in views of the economy?
List the various distortions in incentives that arise in the health care sector.
In what ways is the purchase of medical services similar to the purchase of a car? In what ways is it different?
Are there reasons why hospitals should be particularly suited or unsuited to being run publicly? What do you think accounts for these trends?
Critics of malpractice suits claim that they have contributed significantly to the rise of medical costs and want legislation. What do you think should be done?
What is the effect of deductibility on an individual in 15 percent marginal tax bracket; in 28 percent marginal tax bracket; in 40 percent marginal tax bracket?
Discuss the possible consequences of community rating. Evaluate such proposals from the perspective of equity and efficiency.
Economists have criticized the tax treatment of health insurance. Why have unions resisted changing this tax treatment?