Lecture 13 - Market and Non-market Failures Looking to the...

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Market and Non-market Failures Looking to the Government to Alter the Outcomes of Pure Self-Interest Rozeff - “market failure is a “loaded and value- laden term.”
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Market Failures More on Rozoff The only reason the government ever should get involved is that individuals can achieve benefits with government that they couldn’t achieve in the absence of government
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Market Failures Zerbe and McCuddy Those in favor of government involvement in the face of market failures assume that transaction costs are zero
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Zerbe and McCurdy: “The End of Market Failure:”Transaction Costs Suppose that one party suffers from the effects of pollution from a neighboring source. The pollution damage is $125,000 and the costs of installing devices to eliminate that pollution is $100,000 By how much is pollution overproduced? What is the net gain? Should the project be undertaken?
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Zerbe and McCurdy, “The End of Market Failures: The Salt Dilemma” Highways de-ice roads with salt because clear
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This note was uploaded on 04/22/2008 for the course BCOR 3010 taught by Professor None during the Spring '07 term at Colorado.

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Lecture 13 - Market and Non-market Failures Looking to the...

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