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Unformatted text preview: Public provision of private goods. 0 price tends to lead to overconsumption; it costs more to produce a good than the value consumers place on it. Ex: Medical care. Start Ch 6 (Public choice) Issues How do democracies work. Can we examine them analytically. How will the mechanism work as compared to the market mechanism? Individual preferences between public and private goods. Different from Stiglitz presentation. Do with indifference curves Budget constraint, tax price Indifference curves Econ 275 - Public Finance - Fall 1992 - 9/22/92 - Lesson #7 - leson7a.275-- Page --Demand curves Differences between rich and poor--Higher incomes tend to lead to higher demand for public goods. Set up need for voting mechanisms. What will be the result from voting. Median Voter Theorem. The voting paradox...
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This note was uploaded on 07/08/2010 for the course ECON 275 taught by Professor Mcintyre during the Winter '05 term at BYU.
- Winter '05