Econ 441 Public Economics

Discussion handouts

Here you will find the solutions to the handouts and the quizzes . Remember you are now becoming the adviser of the President. So become the best one!

Externalities

There was no Quiz, only Problems. 
Recall: When is it better  to use taxes, when is it better to establish property rights?

REVIEW
Good luck in the midterm!
​Midterm will take place at Ag Hall 125
Adverse Selection and Moral hazard
No Quiz, Recall: What is a pooling eq?, what is a separating eq?, when do we use the envelope theorem?
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General Equilibrium
​How labor supply reacts when we tax capital?

Public Goods

Why do you think that the quiz was hard? Maybe you need to review consumer theory from 301. 
Recall: Is it always optimal to split the bill from all public goods?

Insurance 
There was no Quiz. Recall the Theorem that we derived. 
Why is it so important to have risk aversion? What happens if the prime is not actuarially fair?
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REVIEW: Problem Set 4
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More about Public goods

How do we solve a utility maximization with two goods? How can you find the price relationship?
Recall: Efficient quantities requires to add both budget constraints.
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Intertemporal Consumption, Adverse Selection.
Why do we save? Under certainty, and a full secure income, there is no savings. What happens with risk?.
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Understanding Taxation
How taxes affect Monopolies?
​Can we dp better taxing the consumers?