Econ 441 Public Economics
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!
There was no Quiz, only Problems.
Recall: When is it better to use taxes, when is it better to establish property rights?
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?
How labor supply reacts when we tax capital?
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?
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?
REVIEW: Problem Set 4
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.
Intertemporal Consumption, Adverse Selection.
Why do we save? Under certainty, and a full secure income, there is no savings. What happens with risk?.
How taxes affect Monopolies?
Can we dp better taxing the consumers?