PUBLIC GOODS
SPILLOVER BENEFITS
COLLEGE DEGREE MARKET
PPT Slide
SPILLOVER BENEFITS OF COLLEGE DEGREES
SUBSIDIES TO GUIDE THE MARKET
THREE REASONS FOR GOVERNMENT INEFFICIENCY
INADEQUATE INFORMATION
INFLEXIBLE TAX SYSTEMS
SPECIAL INTEREST GROUPS
FREE-RIDING EXPERIMENT
OVERCOMING THE FREE-RIDER PROBLEM
Using elasticity to determine the amount of tax shifting
Elasticity and the tax burden
A tax can improve efficiency in a market with negative spillovers
Spillovers are also called “externalities”
Why do negative spillovers cause market failure?
Graphical analysis of a negative spillover
Email: osman.zaim@orst.edu
Home Page: http://osu.orst.edu/instruct/econ201/osman/
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