Calendar3+-+Market+Failure

=**__December 4-6__:** Negative and positive exernalities (Syllabus Section 1.4) =

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 * __Homework Due__: Read Mankiw - Chapter 10 (Externalities and Market Efficiency Section) and watch the videos below.
 * [|Introduction to 6 types of market failure]
 * [|Negative externalities of production]
 * [|Negative externalities of consumption]
 * [|Negative externalities video #2]
 * [|Positive externalities video]
 * [|Positive externalities of consumption video]
 * [|Positive externalities of consumption video #2]
 * [|The problems posed by externalities for society are illustrated in this clip from Dr. Seuss' The Lorax]
 * __Khan Academy__
 * [|Negative Externalities]
 * [|Corrective taxes to remedy negative externalities]
 * [|Positive Externalities]
 * [|Tragedy of the Commons]


 * __Assessments and A__ __ ctivities __ : Lecture on externalities (PDF below)
 * [[file:Externalities.pdf]]
 * Download the following document
 * [[file:The Assignment_podcast_market_failure.docx]]


 * __Related Readings__
 * [|Externalities]
 * [|Regulation]
 * [|Pollution Controls]
 * [|Recycling]
 * [|Information and Prices]
 * [|Economic Growth and the Environment]
 * [|Global Warming]

=**__December 12-16__ :** Government remedies for market failure (Syllabus Section 1.4)=

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>>>>>
 * __Homework Due__: Read Mankiw (Chapter 10 - Public Policies Toward Externalities and Private Solutions To Externalities sections)
 * watch the following videos
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 * Tradable permits/carbon trading and carbon offset (and the critique)
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 * Government remedies- using positive advertisement
 * watch the following video and answer the following questions
 * ###### What approach does the video take to correcting the market failure in the use of condoms?
 * 1) Why is condom use lower than what is socially optimal in India?
 * 2) Is this video an example of a commercial, or is it a //public service announcement//? What’s the difference?
 * 3) Do you think it will work? How would we know if the video succeeded or failed?
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> >> >>>>> >>
 * __//Class activity 1//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * __Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on people who do not drink and drive__.
 * Illustrate the market for alcohol, identifying the market equilibrium level of output and the socially optimal (efficient) level of output.
 * On your graph, shade the area corresponding to the deadweight loss. Explain.
 * //__Class activity 2__//: You will work cooperatively with your partner to construct a response to the following prompt.
 * __Suppose the government decides to issue tradable permits for a certain form of pollution__.
 * Does it matter for economic efficiency whether the government distributes or auctions the permits?
 * If the government chooses to distrtibute the permits, does the allocation of permits among firms matter for efficiency?
 * __//Lecture//__: Government remedies and market failure (PDF below)
 * [[file:Government and Externalities.pdf]]
 * [[file:Government and Externalities.pdf]]

>> [|Free Market Environmentalism]
 * __Related Readings__
 * [|An Emissions Plan Conservatives Could Warm To by Arthur Laffer]
 * [|Cost-benefit analysis]
 * [|Law and Economics]
 * [|Liability]
 * [|Property Rights]
 * [|Rent Seeking]
 * [|Risk and Safety]
 * [|Government Growth]
 * [|Congestion Pricing]

=**__December 12-14__:** Public goods and common resources (Syllabus Section 1.4)=


 * __Homework Due__: Read Mankiw (Chaper 11) and videos below
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 * [|Video on public goods and common resources]
 * [|Video on public goods and common resources]


 * __Assessments and Activities__:
 * __//Lecture//__: Public goods and common resources (PDF below)
 * [[file:Public Goods and Tragedy of Commons.pdf]]


 * __Related Readings__
 * __[|Property Rights]__
 * [|Public Goods]
 * [|Tragedy of the Commons]
 * [|Urban Transportation]
 * [|Health Care]
 * [|Health Insurance]
 * [|Intellectual Property]

=**__December 15-18__:** Asymmetric information (HL) (Syllabus Section 1.4) =


 * __Homework Due__: Read Mankiw (Chapter 22 - Asymmetric Information section)


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.

>>>>
 * __ Both public goods and common resources involve externalities __
 * 1) Are the externalities associated with public goods generally positive or negative? Use examples in your answer. Is the quantity of public goods supplied by the free market greater than or less than the socially efficient quantity?
 * 2) Are the externalities associated with common resrources generally positive or negative? Use examples in your answer. Is the use of common resources in a free market socially efficient?
 * __//Lecture//__//://Asymmetric Information (PDF below)
 * [[file:Asymmetric Information.pdf]]


 * __Related Readings__
 * __[|Information]__
 * [|Information and Prices]
 * [|The Internet]
 * [|Unintended Consequences]
 * [|Insider Trading]
 * [|Health Care]
 * [|Health Insurance]
 * [|Risk and Safety]

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