Lecture 9: Externalities and Public Goods

Topics

  • Externalities: Definition, Coase Theorem
  • Solution to Externalities: Quotas, Pigouvian Taxes, Tradable Permits
  • Public Goods: Definition, Samuelson Condition, Free-Rider Problem

Textbook references: 19.3; 20.1-20.3

Slides

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