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Unformatted text preview: produced in the economy. Questions: Why do we demand government goods and services? Government provides individuals with items not available in markets Income distribution 1 Externalities Public goods How much government is enough? Trade-off between efficiency and equity Balance costs and benefits of government intervention 3. Topics Efficiency Market success Market failure: externalities Market failure: public goods Income distribution Income taxation 2...
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- Spring '06
- J Liu