SlideShare a Scribd company logo
Economic Analysis and Public Policy Session 1 Introduction & Overview Christopher Grandy 6/13/11
 
Purpose of the Course ,[object Object],[object Object],[object Object]
Course Overview Syllabus
Readings ,[object Object],[object Object],[object Object],[object Object],Readings on policy method assigned on: 6/13-14 Information Gathering (Ch. 14) 6/21 Goals-Alternatives (Ch. 15)
Assignments/Grades ,[object Object],[object Object],[object Object],[object Object],[object Object]
Main Points for This Session ,[object Object],[object Object],[object Object],[object Object],[object Object]
Main Elements of Policy Analysis  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Main Elements of Canadian Salmon Fishery Example  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Main Elements of Canadian Salmon Fishery Example (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Notes for Your Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Policy Analysis Compared to Other Approaches ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Second Example: Traffic Congestion in Khon Kaen ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Next Time ,[object Object],[object Object]
Economic Analysis and Public Policy Sessions 2 and 3 Competition & Efficiency Gathering Information Christopher Grandy June 13-14, 2011
Main Points for These Two Sessions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Efficiency ,[object Object],[object Object]
Illustration of Pareto Efficiency Person A Person B 0 0 Moo Satay Pad Thai Set of Pareto Efficient Allocations
Competitive Markets & Efficiency ,[object Object],[object Object],[object Object],[object Object]
Illustration of Competitive Markets & Pareto Efficiency Person A Person B 0 0 Moo Satay Pad Thai
Bottom Line Because each person is doing as well as s/he can (each is on the highest indifference curve possible) GIVEN the starting position and the price, there is NO role for policy in improving this allocation of resources without hurting one of the participants.
Exercise ,[object Object],[object Object],[object Object],[object Object],[object Object]
Consumer Surplus ,[object Object],[object Object],[object Object]
Illustration of Consumer Surplus Price Quantity D P 0 Q 0 Consumer Surplus
Producer Surplus ,[object Object],[object Object]
Illustration of Producer Surplus Price Quantity P 0 Q 0 S Producer Surplus (also called “rent”)
Social Surplus ,[object Object]
Illustration of Social Surplus Price Quantity D P 0 Q 0 S
Welfare Implications of a  Price Change ,[object Object],[object Object],[object Object]
Illustration of Change in Social Surplus Due to Price Reduction Price Quantity D P 0 Q 0 S P 1 Q 1 Loss in Social Surplus (Mainly due to loss in producer surplus)
Point ,[object Object],[object Object],[object Object],[object Object]
Exercise: How would we use consumer/producer surplus to analyze market for kai satay? ,[object Object],[object Object],[object Object],[object Object],Price Quantity Demand Supply
Role for Government ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example: Traffic Congestion in Khon Kaen ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Project: Gathering Information ,[object Object],[object Object],[object Object],[object Object]
Next Time ,[object Object],[object Object],[object Object]
Economic Analysis and Public Policy Sessions 4 and 5 Market Failures I: Public Goods & Externalities Christopher Grandy June 14-15, 2011
Main Points for These Sessions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rivalry and Excludability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Public Goods Public Goods are those that lack either rivalry (they are nonrivalrous) or excludability (they are nonexcludable) or both. Consider these examples:
Public Goods: Type I Rivalry & Nonexcludability ,[object Object],[object Object],[object Object],[object Object]
Public Goods: Type I Rivalry & Nonexcludability Quantity of Fresh Water Price of Fresh Water D MPC Includes the cost of gathering and transporting the water and the reduction in stock of water for this individual only. MSC Includes cost of gathering and transporting, but also reflects reduction in stock of water available to all. Q P P P Q S P S Socially optimal consumption Equilibrium private consumption
Potential Policy Response Public Goods: Type I Rivalry & Nonexcludability ,[object Object],[object Object],[object Object],D MPC MSC Q P P P Q S P S Tax
Type I Public Good (R, NE) as  Prisoner’s Dilemma ,[object Object],[object Object],[object Object],[object Object],Household 1 Household 2 Conserve Conserve Do Not Conserve Do Not Conserve 100 100 80 110 110 80 90 90 “ Do Not Conserve” is a “dominant strategy” for each player. Socially optimal result is Conserve. Nash Equilibrium is Do Not Conserve.
Public Goods: Type II Nonrivalry & Excludability ,[object Object],[object Object],[object Object],[object Object],[object Object]
Two Notes on Nonrivalry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Market Demand for  Rival and Nonrival Goods Rivalrous Good Q P D 1 D 2 D P Q Nonrival Good D 1 D 2 D Market Demand is the  horizontal  sum (over quantity) of individual demand Market Demand is the  vertical  sum (over price) of individual demand
Public Goods: Type II Nonrivalry & Excludability Toll Number of Travelers D S When toll road is not congested, supply exceeds demand at a zero price. Everyone can travel for free. But how is the toll road paid for? Charge a toll and accept underconsumption? Tax everyone & allow all to travel?  0
Public Goods: Type II Nonrivalry & Excludability w/ Congestion Toll Number of Travelers D At some point, each additional traveler imposes costs on others.  A fee reflecting those costs may be appropriate. But this does NOT solve the problem of how to pay for toll road itself. 0 S P 0
Public Goods: Type III Nonrivalry & Nonexcludability ,[object Object],[object Object],[object Object],[object Object],[object Object]
Public Goods: Type III Nonrivalry & Nonexcludability Fireworks Price D 1 D 2 D 3 Total Demand Supply ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Q* tax
Exercise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example: Traffic Congestion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Externalities ,[object Object],[object Object],[object Object],[object Object],[object Object]
Negative Externality: Manufacturing w/ pollution side-effect Quantity of Manufactured Goods Price Demand ,[object Object],[object Object],[object Object],MPC (excluding costs of pollution) MSC (including costs of pollution) Q p Q*
Positive Externality: Education Education P S MPB MSB If parents only pay attention to the benefits to them of educating their child, then they are on the Marginal Private Benefit curve, and will choose education level E 0 . However, if education has positive socialization effects (encouraging cooperation, less violence, etc.), then there are benefits which accrue to others. And MSB is the relevant curve. The optimal level of education is then E*. The parents don’t spend enough on education at E 0 . May justify public subsidies for education. E 0 E*
Externalities & the Coase Theorem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exercise: Which of the following are externalities? ,[object Object],[object Object],[object Object],[object Object]
Example: Traffic Congestion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Next Time ,[object Object],[object Object],[object Object],[object Object]

More Related Content

Similar to Session(รวม)-Sum11[1]

Economics for managers
Economics for managersEconomics for managers
Economics for managers
Janak Secktoo
 
Ms 09 managerial economics
Ms   09 managerial economicsMs   09 managerial economics
Ms 09 managerial economics
smumbahelp
 
Managerial_economics_Sept_2017.ppt
Managerial_economics_Sept_2017.pptManagerial_economics_Sept_2017.ppt
Managerial_economics_Sept_2017.ppt
AbhishekModak17
 
Introduction To Economics
Introduction To EconomicsIntroduction To Economics
Introduction To Economics
Yousef Hani
 
10 ways to turn a good paper into a great one
10 ways to turn a good paper into a great one10 ways to turn a good paper into a great one
10 ways to turn a good paper into a great one
Eton College
 
welfare_Econ.ppt
welfare_Econ.pptwelfare_Econ.ppt
welfare_Econ.ppt
ShobhaBasnet2
 
81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx
81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx
81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx
MuhammedAli304726
 
Economics as a social science
Economics as a social scienceEconomics as a social science
Economics as a social science
Moi University
 
Lecture 1
Lecture 1Lecture 1
Lecture 1
Tamta Sopromadze
 
Pp 8
Pp 8Pp 8
Introduction to economics
Introduction to economicsIntroduction to economics
Introduction to economics
Ratnabali Mitra
 
Economics for entrepreneurs
Economics for entrepreneurs Economics for entrepreneurs
Economics for entrepreneurs
Dr. Trilok Kumar Jain
 
Running Header ECONOMICS PAPER 1Ngai Lam Oscar Wong.docx
Running Header ECONOMICS PAPER    1Ngai Lam Oscar Wong.docxRunning Header ECONOMICS PAPER    1Ngai Lam Oscar Wong.docx
Running Header ECONOMICS PAPER 1Ngai Lam Oscar Wong.docx
agnesdcarey33086
 
ch1.pptx best one among eco book the yeje and the environment of the environm...
ch1.pptx best one among eco book the yeje and the environment of the environm...ch1.pptx best one among eco book the yeje and the environment of the environm...
ch1.pptx best one among eco book the yeje and the environment of the environm...
khalilahmedqau
 
Micro Economics.pptx
Micro Economics.pptxMicro Economics.pptx
Micro Economics.pptx
anjalisaluja6
 
Economics
EconomicsEconomics
Economics
mhALZz
 
Chapter 5 Efficiency and Equity· Using prices in markets to a.docx
Chapter 5 Efficiency and Equity· Using prices in markets to a.docxChapter 5 Efficiency and Equity· Using prices in markets to a.docx
Chapter 5 Efficiency and Equity· Using prices in markets to a.docx
christinemaritza
 
0._ introduction_0.ppt
0._       introduction_0.ppt0._       introduction_0.ppt
0._ introduction_0.ppt
DipakRathod48
 
Pricing Objectives
Pricing ObjectivesPricing Objectives
Pricing Objectives
rdwaters76
 
Microeconomic_Basic_Concepts_&_Principals[1] - Read-Only
Microeconomic_Basic_Concepts_&_Principals[1]  -  Read-OnlyMicroeconomic_Basic_Concepts_&_Principals[1]  -  Read-Only
Microeconomic_Basic_Concepts_&_Principals[1] - Read-Only
kumarsinghrahul232
 

Similar to Session(รวม)-Sum11[1] (20)

Economics for managers
Economics for managersEconomics for managers
Economics for managers
 
Ms 09 managerial economics
Ms   09 managerial economicsMs   09 managerial economics
Ms 09 managerial economics
 
Managerial_economics_Sept_2017.ppt
Managerial_economics_Sept_2017.pptManagerial_economics_Sept_2017.ppt
Managerial_economics_Sept_2017.ppt
 
Introduction To Economics
Introduction To EconomicsIntroduction To Economics
Introduction To Economics
 
10 ways to turn a good paper into a great one
10 ways to turn a good paper into a great one10 ways to turn a good paper into a great one
10 ways to turn a good paper into a great one
 
welfare_Econ.ppt
welfare_Econ.pptwelfare_Econ.ppt
welfare_Econ.ppt
 
81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx
81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx
81688ada-a751-47a8-be1e-aa3b4a3250d8.pptx
 
Economics as a social science
Economics as a social scienceEconomics as a social science
Economics as a social science
 
Lecture 1
Lecture 1Lecture 1
Lecture 1
 
Pp 8
Pp 8Pp 8
Pp 8
 
Introduction to economics
Introduction to economicsIntroduction to economics
Introduction to economics
 
Economics for entrepreneurs
Economics for entrepreneurs Economics for entrepreneurs
Economics for entrepreneurs
 
Running Header ECONOMICS PAPER 1Ngai Lam Oscar Wong.docx
Running Header ECONOMICS PAPER    1Ngai Lam Oscar Wong.docxRunning Header ECONOMICS PAPER    1Ngai Lam Oscar Wong.docx
Running Header ECONOMICS PAPER 1Ngai Lam Oscar Wong.docx
 
ch1.pptx best one among eco book the yeje and the environment of the environm...
ch1.pptx best one among eco book the yeje and the environment of the environm...ch1.pptx best one among eco book the yeje and the environment of the environm...
ch1.pptx best one among eco book the yeje and the environment of the environm...
 
Micro Economics.pptx
Micro Economics.pptxMicro Economics.pptx
Micro Economics.pptx
 
Economics
EconomicsEconomics
Economics
 
Chapter 5 Efficiency and Equity· Using prices in markets to a.docx
Chapter 5 Efficiency and Equity· Using prices in markets to a.docxChapter 5 Efficiency and Equity· Using prices in markets to a.docx
Chapter 5 Efficiency and Equity· Using prices in markets to a.docx
 
0._ introduction_0.ppt
0._       introduction_0.ppt0._       introduction_0.ppt
0._ introduction_0.ppt
 
Pricing Objectives
Pricing ObjectivesPricing Objectives
Pricing Objectives
 
Microeconomic_Basic_Concepts_&_Principals[1] - Read-Only
Microeconomic_Basic_Concepts_&_Principals[1]  -  Read-OnlyMicroeconomic_Basic_Concepts_&_Principals[1]  -  Read-Only
Microeconomic_Basic_Concepts_&_Principals[1] - Read-Only
 

Recently uploaded

Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
cosmo-soil
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
nimaruinazawa258
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
shruti1menon2
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
FinTech Belgium
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
AntoniaOwensDetwiler
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
KishanChaudhary23
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
ResolutionFoundation
 
5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports
EasyReports
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
AntoniaOwensDetwiler
 
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
5spllj1l
 
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
5spllj1l
 
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdfSeeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Ashis Kumar Dey
 
Upanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishadUpanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishad
ajaykumarxoxo04
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
sameer shah
 
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
5spllj1l
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
28xo7hf
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Suomen Pankki
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 

Recently uploaded (20)

Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
 
5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports5 Tips for Creating Standard Financial Reports
5 Tips for Creating Standard Financial Reports
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
 
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
 
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
 
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdfSeeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
 
Upanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishadUpanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishad
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
 
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
 
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 

Session(รวม)-Sum11[1]

  • 1. Economic Analysis and Public Policy Session 1 Introduction & Overview Christopher Grandy 6/13/11
  • 2.  
  • 3.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. Economic Analysis and Public Policy Sessions 2 and 3 Competition & Efficiency Gathering Information Christopher Grandy June 13-14, 2011
  • 16.
  • 17.
  • 18. Illustration of Pareto Efficiency Person A Person B 0 0 Moo Satay Pad Thai Set of Pareto Efficient Allocations
  • 19.
  • 20. Illustration of Competitive Markets & Pareto Efficiency Person A Person B 0 0 Moo Satay Pad Thai
  • 21. Bottom Line Because each person is doing as well as s/he can (each is on the highest indifference curve possible) GIVEN the starting position and the price, there is NO role for policy in improving this allocation of resources without hurting one of the participants.
  • 22.
  • 23.
  • 24. Illustration of Consumer Surplus Price Quantity D P 0 Q 0 Consumer Surplus
  • 25.
  • 26. Illustration of Producer Surplus Price Quantity P 0 Q 0 S Producer Surplus (also called “rent”)
  • 27.
  • 28. Illustration of Social Surplus Price Quantity D P 0 Q 0 S
  • 29.
  • 30. Illustration of Change in Social Surplus Due to Price Reduction Price Quantity D P 0 Q 0 S P 1 Q 1 Loss in Social Surplus (Mainly due to loss in producer surplus)
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37. Economic Analysis and Public Policy Sessions 4 and 5 Market Failures I: Public Goods & Externalities Christopher Grandy June 14-15, 2011
  • 38.
  • 39.
  • 40. Public Goods Public Goods are those that lack either rivalry (they are nonrivalrous) or excludability (they are nonexcludable) or both. Consider these examples:
  • 41.
  • 42. Public Goods: Type I Rivalry & Nonexcludability Quantity of Fresh Water Price of Fresh Water D MPC Includes the cost of gathering and transporting the water and the reduction in stock of water for this individual only. MSC Includes cost of gathering and transporting, but also reflects reduction in stock of water available to all. Q P P P Q S P S Socially optimal consumption Equilibrium private consumption
  • 43.
  • 44.
  • 45.
  • 46.
  • 47. Market Demand for Rival and Nonrival Goods Rivalrous Good Q P D 1 D 2 D P Q Nonrival Good D 1 D 2 D Market Demand is the horizontal sum (over quantity) of individual demand Market Demand is the vertical sum (over price) of individual demand
  • 48. Public Goods: Type II Nonrivalry & Excludability Toll Number of Travelers D S When toll road is not congested, supply exceeds demand at a zero price. Everyone can travel for free. But how is the toll road paid for? Charge a toll and accept underconsumption? Tax everyone & allow all to travel? 0
  • 49. Public Goods: Type II Nonrivalry & Excludability w/ Congestion Toll Number of Travelers D At some point, each additional traveler imposes costs on others. A fee reflecting those costs may be appropriate. But this does NOT solve the problem of how to pay for toll road itself. 0 S P 0
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56. Positive Externality: Education Education P S MPB MSB If parents only pay attention to the benefits to them of educating their child, then they are on the Marginal Private Benefit curve, and will choose education level E 0 . However, if education has positive socialization effects (encouraging cooperation, less violence, etc.), then there are benefits which accrue to others. And MSB is the relevant curve. The optimal level of education is then E*. The parents don’t spend enough on education at E 0 . May justify public subsidies for education. E 0 E*
  • 57.
  • 58.
  • 59.
  • 60.