PUBLIC GOODS

4/17/00


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Table of Contents

PUBLIC GOODS

SPILLOVER BENEFITS

COLLEGE DEGREE MARKET

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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

Using elasticity to determine the amount of tax shifting

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Elasticity and the tax burden

Elasticity and the tax burden

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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

Author: Don Balch

Email: osman.zaim@orst.edu

Home Page: http://osu.orst.edu/instruct/econ201/osman/

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