ECON-642 Public Economics: Discussion 2b
Discussion Questions:
- What is your favorite example of an externality in today’s world? Explain why.
- Provide a concrete case where you experienced or observed adverse selection.
- Provide a concrete case where you experienced or observed moral hazar.
- Externalities and Asymmetric Information
- PowerPoint for Class 4Required Readings:
·
Hindriks and Myles,
Chapter 8 and Chapter 10 (excluding Sections 8.9 and 10.4 to 10.8).
·
Andrew, Brian (2008). Market Failure, Government Failure and Externalities
in Climate Change Mitigation: the Case for a Carbon Tax. Public Administration and Development, Vol. 28, No. 5, pp. 393-401;
available at: http://onlinelibrary.wiley.com/doi/10.1002/pad.517/pdf.
Readings
Textbook
Hindriks, J., Myles, G. D. (2013). Intermediate public economics (2nd ed.). Cambridge Press- Chapter 8: Externalities
- Chapter 10: Asymmetric Information (excluding Sections 8.9 and 10.4 to 10.8).
Additional Reading
- Andrew, Brian (2008) “Market Failure, Government Failure and Externalities in Climate Change Mitigation: the Case for a Carbon Tax”Links to an external site., Public Administration and Development, Vol. 28, No. 5, pp. 393-401.
Lecture Slides
- Module 2b Lecture Slides (not narrated)Download Module 2b Lecture Slides (not narrated)
- For the narrated version (Zoom Recording), please go to the "Media Gallery" folder and click on the video you want to watch.