How can you measure the costs associated with traffic

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
size of a city. How can you measure the costs associated with traffic congestion in practice? Problem 2: Private Provision of Local Public Goods The city of Double-Trouble funds its public good provision solely from voluntary contributions from its two residents, Joe “Cool” Phil and Hannah “Nscho-Tschi” Sullivan. Each of its two residents has a utility function over private goods z and public goods g given by: U p ( z p , g ) = ln( z p ) + ln( g ) (1) U h ( z h , g ) = 2 ln( z h ) + ln( g ) (2)
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Hannah’s income is 50. Phil’s income is 100. The marginal cost of producing one unit of the public good is equal to one unit of income. a) Compute the reaction functions of Hannah and Phil. b) Suppose Hannah donates nothing, how much does Philip donate? Suppose Philip donates nothing, how much does Hannah donate? c) Assuming that Hannah and Philip must donate either zero or a positive amount of money, compute the equilibrium of the model? d) Is the equilibrium efficient? Discuss. Problem 3: Public Policy Read the attached article “Pennsylvania Judge Blocks Voter-ID Law” by Kris Maher in the WSJ. a) Briefly discuss how the passage of the law would affect the set of voters participating in election. What type of voters would be less likely to participate under the new law? b) Using your knowledge of the median voter model, how would the passage of such a law affect the identify of the median or decisive voter in an election in PA? Which party is likely to benefit? Explain.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern