DOCSLIB.ORG

Microeconomics Instructor Miller Practice Problems Externalities and Public Goods 1. an Externality Is A) a Benefit Realized By

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Microeconomics Instructor Miller Practice Problems Externalities and Public Goods 1. an Externality Is A) a Benefit Realized By Microeconomics Instructor Miller Practice Problems Externalities and Public Goods 1. An externality is A) a benefit realized by the purchaser of a good or service. B) a cost paid for by the producer of a good or service. C) a benefit or cost experienced by someone who is not a producer or consumer of a good or service. D) anything that is external or not relevant to the production of a good or service. 2. What is a market failure? A) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost. B) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost. C) It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event. D) It refers to a breakdown in a market economy because of widespread corruption in government. 3. Which of the following is a source of market failure? A) unforeseen circumstances which leads to the bankruptcy of many firms B) a lack of government intervention in a market C) incomplete property rights or inability to enforce property rights D) an inequitable income distribution 4. Which of the following activities create a negative externality? A) cleaning up the sidewalk on your block B) graduating from college C) repainting the house you live in to improve its appearance D) keeping a junked car parked on your front lawn 5. A negative externality exists if A) there are price controls in a market. B) there are quantity controls in a market. C) the marginal social cost of producing a good or service exceeds the private cost. D) the marginal private cost of producing a good or service exceeds the social cost. 6. Which of the following would result in a positive externality? A) A local government establishes a price ceiling on rental apartments. B) An electric utility burns coal that causes acid rain. C) Medical research results in a cure for malaria. D) McDonald's adds new fat-free items to its menu. 7. When there is a positive externality A) the private benefit received by consumers is greater than the external benefit. B) the social benefit received by consumers is greater than the private benefit. C) the private benefit received by consumers is greater than the private cost. D) the private benefit received by consumers is greater than the social benefit. 8. When a negative externality exists, the private market produces A) more than the economically efficient output level. B) less than the economically efficient output level. C) products at a low opportunity cost. D) products at a high opportunity cost. 9. When a positive externality exists, the private market produces A) more than the economically efficient output level. B) less than the economically efficient output level. C) products at a low opportunity cost. D) products at a high opportunity cost. 10. If the social benefit of consuming a good or a service exceeds the private benefit A) a negative externality exists. B) the market achieves economic efficiency. C) a positive externality exists. D) the sum of consumer surplus and producer surplus is maximized. 11. When production generates a negative externality, the true cost of production is the A) private cost of production. B) public cost of production. C) social cost of production. D) average cost of production. The above figure shows a market with a negative externality. 12. Refer to the above figure. The efficient output level is A) Qd. B) Qb. C) Qa. D) Qb - Qd. 13. Refer to the above figure. The private profit maximizing quantity for the firm is A) Qa. B) Qb. C) Qb - Qd. D) Qd. 14. Refer to the above figure. The deadweight loss due to the externality is represented by the area A) abc. B) abf. C) abd. D) ade. 15. Refer to the above figure. The size of marginal external costs can be determined by A) S2 + S1 at each output level. B) S2 - S1 at each output level. C) the supply curve S2. D) the supply curve S1. 16. If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost A) further reductions will make society better off. B) the marginal benefit will rise and the marginal cost will fall as further reductions are made. C) economic efficiency will be achieved when emissions are reduced to zero. D) private businesses, rather the consumers, should be made to pay for the cost of further reductions. 17. What does the phrase "internalizing an external cost" mean? A) limiting the extent to which domestic firms can outsource production B) prohibiting economic activities that create externalities C) forcing producers to factor into their production costs the cost of the externalities created in the production of their output D) finding a way to address cross-border pollution 18. Some policymakers argue that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause A) consumers to internalize the externality. B) producers to internalize the externality. C) the external cost to drinking soda to become a private cost paid by the government. D) the external cost to drinking soda to become a private cost paid by producers. 19. If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set A) equal to the marginal external cost at the economically efficient level of pollution. B) equal to the marginal private cost of production at the economically efficient level of pollution. C) equal to the amount of the deadweight loss created in the absence of a pollution tax. D) at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product. 20. Governments can increase the consumption of a product that creates positive externalities by A) subsidizing the production of the product so that the supply is increased and market price is reduced. B) taxing the production and consumption of the product. C) convincing everyone to consume the good. D) assigning property rights to the producers of the product. 21. State and local governments subsidize college students with grants and low-interest loans. The loans and subsidies are examples of A) positive externalities. B) Coase subsidies. C) Pigovian subsidies. D) emission allowances. 22. A product is considered to be rivalrous if A) you can keep those who did not pay for the item from enjoying its benefits. B) you cannot keep those who did not pay for the item from enjoying its benefits. C) your consumption of the product reduces the quantity available for others to consume. D) it is jointly owned by all members of a community. 23. A product is considered to be excludable if A) you can keep those who did not pay for the item from enjoying its benefits. B) you cannot keep those who did not pay for the item from enjoying its benefits. C) your consumption of the product reduces the quantity available for others to consume. D) it is jointly owned by all members of a community. 24. Which of the following displays these two characteristics: nonrivalry and nonexcludability in consumption? A) public goods B) private goods C) quasi-public goods D) common resources 25. Which of the following displays rivalry and excludability in consumption? A) public goods B) private goods C) quasi-public goods D) common resources 26. Common resources differ from public goods in that A) common resources are non-excludable while public goods are excludable to those who do not pay for the good. B) unlike public goods, common resources are rivalrous in consumption. C) common resources are collectively owned by a group of people while public goods are government owned. D) common resources are resources that cannot be renewed but the production of public goods can be increased any time. 27. In economics, the term "free rider" refers to A) a person who evades taxes. B) a supervisor who delegates menial time-consuming activities to others. C) one who volunteers her services. D) one who waits for others to produce a good and then enjoys its benefits without paying for it. 28. Private producers have no incentive to provide public goods because A) the government subsidy granted is usually insufficient to enable private producers to make a profit. B) production of huge quantities of public goods entails huge fixed costs. C) they cannot avoid the tragedy of the commons. D) once produced, it will not be possible to exclude those who do not pay for the good. 29. The "tragedy of the commons" refers to the phenomenon where A) individuals are free riders. B) people overuse a common resource. C) people do not internalize an externality. D) there is rivalry in consumption. 30. The basic cause of deadweight losses from the existence of common resources and externalities is A) a lack of clearly defined and enforceable property rights. B) the self interested rationality of human beings. C) the use of a market system to deal with scarcity. D) the absence of government intervention. Key 1. C 11. C 21. C 2. A 12. C 22. C 3. C 13. B 23. A 4. D 14. B 24. A 5. C 15. B 25. B 6. C 16. A 26. B 7. B 17. C 27. D 8. A 18. A 28. D 9. B 19.
Load more

Recommended publications
  • Shopping Externalities and Self-Fulfilling Unemployment Fluctuations
    NBER WORKING PAPER SERIES SHOPPING EXTERNALITIES AND SELF-FULFILLING UNEMPLOYMENT FLUCTUATIONS Greg Kaplan Guido Menzio Working Paper 18777 http://www.nber.org/papers/w18777 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2013 We thank the Kielts-Nielsen Data Center at the University of Chicago Booth School of Business for providing access to the Kielts-Nielsen Consumer Panel Dataset. We thank the editor, Harald Uhlig, and three anonymous referees for insightful and detailed suggestions that helped us revising the paper. We are also grateful to Mark Aguiar, Jim Albrecht, Michele Boldrin, Russ Cooper, Ben Eden, Chris Edmond, Roger Farmer, Veronica Guerrieri, Bob Hall, Erik Hurst, Martin Schneider, Venky Venkateswaran, Susan Vroman, Steve Williamson and Randy Wright for many useful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Greg Kaplan and Guido Menzio. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Shopping Externalities and Self-Fulfilling Unemployment Fluctuations Greg Kaplan and Guido Menzio NBER Working Paper No. 18777 February 2013, Revised October 2013 JEL No. D11,D21,D43,E32 ABSTRACT We propose a novel theory of self-fulfilling unemployment fluctuations. According to this theory, a firm hiring an additional worker creates positive external effects on other firms, as a worker has more income to spend and less time to search for low prices when he is employed than when he is unemployed.
    [Show full text]
  • Principles of MICROECONOMICS an Open Text by Douglas Curtis and Ian Irvine
    with Open Texts Principles of MICROECONOMICS an Open Text by Douglas Curtis and Ian Irvine VERSION 2017 – REVISION B ADAPTABLE | ACCESSIBLE | AFFORDABLE Creative Commons License (CC BY-NC-SA) advancing learning Champions of Access to Knowledge OPEN TEXT ONLINE ASSESSMENT All digital forms of access to our high- We have been developing superior on- quality open texts are entirely FREE! All line formative assessment for more than content is reviewed for excellence and is 15 years. Our questions are continuously wholly adaptable; custom editions are pro- adapted with the content and reviewed for duced by Lyryx for those adopting Lyryx as- quality and sound pedagogy. To enhance sessment. Access to the original source files learning, students receive immediate per- is also open to anyone! sonalized feedback. Student grade reports and performance statistics are also provided. SUPPORT INSTRUCTOR SUPPLEMENTS Access to our in-house support team is avail- Additional instructor resources are also able 7 days/week to provide prompt resolu- freely accessible. Product dependent, these tion to both student and instructor inquiries. supplements include: full sets of adaptable In addition, we work one-on-one with in- slides and lecture notes, solutions manuals, structors to provide a comprehensive sys- and multiple choice question banks with an tem, customized for their course. This can exam building tool. include adapting the text, managing multi- ple sections, and more! Contact Lyryx Today! [email protected] advancing learning Principles of Microeconomics an Open Text by Douglas Curtis and Ian Irvine Version 2017 — Revision B BE A CHAMPION OF OER! Contribute suggestions for improvements, new content, or errata: A new topic A new example An interesting new question Any other suggestions to improve the material Contact Lyryx at [email protected] with your ideas.
    [Show full text]
  • Microeconomics III Oligopoly — Preface to Game Theory
    Microeconomics III Oligopoly — prefacetogametheory (Mar 11, 2012) School of Economics The Interdisciplinary Center (IDC), Herzliya Oligopoly is a market in which only a few firms compete with one another, • and entry of new firmsisimpeded. The situation is known as the Cournot model after Antoine Augustin • Cournot, a French economist, philosopher and mathematician (1801-1877). In the basic example, a single good is produced by two firms (the industry • is a “duopoly”). Cournot’s oligopoly model (1838) — A single good is produced by two firms (the industry is a “duopoly”). — The cost for firm =1 2 for producing units of the good is given by (“unit cost” is constant equal to 0). — If the firms’ total output is = 1 + 2 then the market price is = − if and zero otherwise (linear inverse demand function). We ≥ also assume that . The inverse demand function P A P=A-Q A Q To find the Nash equilibria of the Cournot’s game, we can use the proce- dures based on the firms’ best response functions. But first we need the firms payoffs(profits): 1 = 1 11 − =( )1 11 − − =( 1 2)1 11 − − − =( 1 2 1)1 − − − and similarly, 2 =( 1 2 2)2 − − − Firm 1’s profit as a function of its output (given firm 2’s output) Profit 1 q'2 q2 q2 A c q A c q' Output 1 1 2 1 2 2 2 To find firm 1’s best response to any given output 2 of firm 2, we need to study firm 1’s profit as a function of its output 1 for given values of 2.
    [Show full text]
  • Learning Externalities and Economic Growth
    Learning Externalities and Economic Growth Alejandro M. Rodriguez∗ August 2004 ∗I would like to thank Profesor Robert E. Lucas for motivating me to write this paper and for his helpful comments. Profesor Alvarez also provided some useful insights. Please send comments to [email protected]. All errors are mine. ABSTRACT It is a well known fact that not all countries develop at the same time. The industrial revolution began over 200 years ago in England and has been spreading over the world ever since. In their paper Barriers to Riches, Parente and Prescott notice that countries that enter the industrial stage later on grow faster than what the early starters did. I present a simple model with learning externalities that generates this kind of behavior. I follow Lucas (1998) and solve the optimization problem of the representative agent under the assumption that the external effect is given by the world leader’s human capital. 70 60 50 40 30 20 Number of years to double income 10 0 1820 1840 1860 1880 1900 1920 1940 1960 1980 Year income reached 2,000 (1990 U.S. $) Fig. 1. Growth patterns from Parente and Prescott 1. Introduction In Barriers to Riches, Parente and Prescott observe that ”Countries reaching a given level of income at a later date typically double that level in a shorter time ” To support this conclusion they present Figure 1 Figure 1 shows the year in which a country reached the per capita income level of 2,000 of 1990 U.S. dollars and the number of years it took that country to double its per capita income to 4,000 of 1990 U.S.
    [Show full text]
  • ECON - Economics ECON - Economics
    ECON - Economics ECON - Economics Global Citizenship Program ECON 3020 Intermediate Microeconomics (3) Knowledge Areas (....) This course covers advanced theory and applications in microeconomics. Topics include utility theory, consumer and ARTS Arts Appreciation firm choice, optimization, goods and services markets, resource GLBL Global Understanding markets, strategic behavior, and market equilibrium. Prerequisite: ECON 2000 and ECON 3000. PNW Physical & Natural World ECON 3030 Intermediate Macroeconomics (3) QL Quantitative Literacy This course covers advanced theory and applications in ROC Roots of Cultures macroeconomics. Topics include growth, determination of income, employment and output, aggregate demand and supply, the SSHB Social Systems & Human business cycle, monetary and fiscal policies, and international Behavior macroeconomic modeling. Prerequisite: ECON 2000 and ECON 3000. Global Citizenship Program ECON 3100 Issues in Economics (3) Skill Areas (....) Analyzes current economic issues in terms of historical CRI Critical Thinking background, present status, and possible solutions. May be repeated for credit if content differs. Prerequisite: ECON 2000. ETH Ethical Reasoning INTC Intercultural Competence ECON 3150 Digital Economy (3) Course Descriptions The digital economy has generated the creation of a large range OCOM Oral Communication of significant dedicated businesses. But, it has also forced WCOM Written Communication traditional businesses to revise their own approach and their own value chains. The pervasiveness can be observable in ** Course fulfills two skill areas commerce, marketing, distribution and sales, but also in supply logistics, energy management, finance and human resources. This class introduces the main actors, the ecosystem in which they operate, the new rules of this game, the impacts on existing ECON 2000 Survey of Economics (3) structures and the required expertise in those areas.
    [Show full text]
  • THE DEADWEIGHT LOSS from Alan J. Auerbach Working Paper No. 2510
    NBER WORKING PAPER SERIES THE DEADWEIGHT LOSS FROM "NONNEUTRAL" CAPITAL INCOME TAXATION Alan J. Auerbach Working Paper No. 2510 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 1988 I am grateful to the National Science Foundation for financial support (grant #SES— 8617495), to Kevin Hassett for excellent research assistance, and to Jim Hines, Larry Kotlikoff and participants in seminars at Columbia, NBER, Penn and Western Ontario for connnents on earlier drafts. The research reported here is part of the NBERs research program in Taxation. Any opinions expressed are those of the author and not those of the National Bureau of Economic Research, Support from The Lynde and Harry Bradley Foundation is gratefully acknowledged. NBER Working Paper #2510 The Deadweight Loss froni "Nonneutral" Capital Income Taxation ABSTRACT This paper develops an overlapping generations general equilibrium growth model with an explicit characterization of the role of capital goods in the evaluate and production process. The model is rich enough in structure to measure simultaneously the different distortions associated with capital income taxation (across sectors, across assets and across time) yet simple enough to yield intuitive analytical results as well. The main result is that uniform capital income taxation is almost certainly suboptimal, theoretically, but that empirically, optimal deviations from uniform taxation are inconsequential. We also find that though the gains from a move to uniform taxation are not large in absolute magnitude these of gains would be offset only by an overall rise in capital income tax rates several percentage points. A separate contribution of the paper is the development of a technique for distinguishing intergenerational transfers from efficiency gains in analyzing the effects of policy changes on long—run welfare.
    [Show full text]
  • FALL 2021 COURSE SCHEDULE August 23 –– December 9, 2021
    9/15/21 DEPARTMENT OF ECONOMICS FALL 2021 COURSE SCHEDULE August 23 –– December 9, 2021 Course # Class # Units Course Title Day Time Location Instruction Mode Instructor Limit 1078-001 20457 3 Mathematical Tools for Economists 1 MWF 8:00-8:50 ECON 117 IN PERSON Bentz 47 1078-002 20200 3 Mathematical Tools for Economists 1 MWF 6:30-7:20 ECON 119 IN PERSON Hurt 47 1078-004 13409 3 Mathematical Tools for Economists 1 0 ONLINE ONLINE ONLINE Marein 71 1088-001 18745 3 Mathematical Tools for Economists 2 MWF 6:30-7:20 HLMS 141 IN PERSON Zhou, S 47 1088-002 20748 3 Mathematical Tools for Economists 2 MWF 8:00-8:50 HLMS 211 IN PERSON Flynn 47 2010-100 19679 4 Principles of Microeconomics 0 ONLINE ONLINE ONLINE Keller 500 2010-200 14353 4 Principles of Microeconomics 0 ONLINE ONLINE ONLINE Carballo 500 2010-300 14354 4 Principles of Microeconomics 0 ONLINE ONLINE ONLINE Bottan 500 2010-600 14355 4 Principles of Microeconomics 0 ONLINE ONLINE ONLINE Klein 200 2010-700 19138 4 Principles of Microeconomics 0 ONLINE ONLINE ONLINE Gruber 200 2020-100 14356 4 Principles of Macroeconomics 0 ONLINE ONLINE ONLINE Valkovci 400 3070-010 13420 4 Intermediate Microeconomic Theory MWF 9:10-10:00 ECON 119 IN PERSON Barham 47 3070-020 21070 4 Intermediate Microeconomic Theory TTH 2:20-3:35 ECON 117 IN PERSON Chen 47 3070-030 20758 4 Intermediate Microeconomic Theory TTH 11:10-12:25 ECON 119 IN PERSON Choi 47 3070-040 21443 4 Intermediate Microeconomic Theory MWF 1:50-2:40 ECON 119 IN PERSON Bottan 47 3080-001 22180 3 Intermediate Macroeconomic Theory MWF 11:30-12:20
    [Show full text]
  • 2020-2021 Bachelor of Arts in Economics Option in Mathematical
    CSULB College of Liberal Arts Advising Center 2020 - 2021 Bachelor of Arts in Economics Option in Mathematical Economics and Economic Theory 48 Units Use this checklist in combination with your official Academic Requirements Report (ARR). This checklist is not intended to replace advising. Consult the advisor for appropriate course sequencing. Curriculum changes in progress. Requirements subject to change. To be considered for admission to the major, complete the following Major Specific Requirements (MSR) by 60 units: • ECON 100, ECON 101, MATH 122, MATH 123 with a minimum 2.3 suite GPA and an overall GPA of 2.25 or higher • Grades of “C” or better in GE Foundations Courses Prerequisites Complete ALL of the following courses with grades of “C” or better (18 units total): ECON 100: Principles of Macroeconomics (3) MATH 103 or Higher ECON 101: Principles of Microeconomics (3) MATH 103 or Higher MATH 111; MATH 112B or 113; All with Grades of “C” MATH 122: Calculus I (4) or Better; or Appropriate CSULB Algebra and Calculus Placement MATH 123: Calculus II (4) MATH 122 with a Grade of “C” or Better MATH 224: Calculus III (4) MATH 123 with a Grade of “C” or Better Complete the following course (3 units total): MATH 247: Introduction to Linear Algebra (3) MATH 123 Complete ALL of the following courses with grades of “C” or better (6 units total): ECON 100 and 101; MATH 115 or 119A or 122; ECON 310: Microeconomic Theory (3) All with Grades of “C” or Better ECON 100 and 101; MATH 115 or 119A or 122; ECON 311: Macroeconomic Theory (3) All with
    [Show full text]
  • Friedrich Von Hayek and Mechanism Design
    Rev Austrian Econ (2015) 28:247–252 DOI 10.1007/s11138-015-0310-3 Friedrich von Hayek and mechanism design Eric S. Maskin1,2 Published online: 12 April 2015 # Springer Science+Business Media New York 2015 Abstract I argue that Friedrich von Hayek anticipated some major results in the theory of mechanism design. Keywords Hayek . Mechanism design JEL Classification D82 1 Introduction Mechanism design is the engineering part of economic theory. Usually, in economics, we take economic institutions as given and try to predict the economic or social outcomes that these institutions generate. But in mechanism design, we reverse the direction. We begin by identifying the outcomes that we want. Then, we try to figure out whether some mechanism – some institution – can be constructed to deliver those outcomes. If the answer is yes, we then explore the form that such a mechanism might take. Sometimes the solution is a “standard” or “natural” mechanism - - e.g. the “market mechanism.” Sometimes it is novel or artificial. For example, the Vickrey-Clarke- Groves (Vickrey 1961; Clarke 1971; Groves 1973) mechanism can be used for obtaining an efficient allocation of public goods - - which will typically be underprovided in a standard market setting (see Samuelson 1954). Friedrich von Hayek’s work was an important precursor to the modern theory of mechanism design. Indeed, Leonid Hurwicz – the father of the subject – was directly inspired by the Planning Controversy between Hayek and Ludwig von Mises on the A version of this paper was presented at the conference “40 Years after the Nobel,” George Mason University, October 2, 2014.
    [Show full text]
  • Externalities and Public Goods Introduction 17
    17 Externalities and Public Goods Introduction 17 Chapter Outline 17.1 Externalities 17.2 Correcting Externalities 17.3 The Coase Theorem: Free Markets Addressing Externalities on Their Own 17.4 Public Goods 17.5 Conclusion Introduction 17 Pollution is a major fact of life around the world. • The United States has areas (notably urban) struggling with air quality; the health costs are estimated at more than $100 billion per year. • Much pollution is due to coal-fired power plants operating both domestically and abroad. Other forms of pollution are also common. • The noise of your neighbor’s party • The person smoking next to you • The mess in someone’s lawn Introduction 17 These outcomes are evidence of a market failure. • Markets are efficient when all transactions that positively benefit society take place. • An efficient market takes all costs and benefits, both private and social, into account. • Similarly, the smoker in the park is concerned only with his enjoyment, not the costs imposed on other people in the park. • An efficient market takes these additional costs into account. Asymmetric information is a source of market failure that we considered in the last chapter. Here, we discuss two further sources. 1. Externalities 2. Public goods Externalities 17.1 Externalities: A cost or benefit that affects a party not directly involved in a transaction. • Negative externality: A cost imposed on a party not directly involved in a transaction ‒ Example: Air pollution from coal-fired power plants • Positive externality: A benefit conferred on a party not directly involved in a transaction ‒ Example: A beekeeper’s bees not only produce honey but can help neighboring farmers by pollinating crops.
    [Show full text]
  • Hayek's Relevance: a Comment on Richard A. Posner's
    HAYEK’S RELEVANCE: A COMMENT ON RICHARD A. POSNER’S, HAYEK, LAW, AND COGNITION Donald J. Boudreaux* Frankness demands that I open my comment on Richard Posner’s essay1 on F.A. Hayek by revealing that I blog at Café Hayek2 and that the wall-hanging displayed most prominently in my office is a photograph of Hayek. I have long considered myself to be not an Austrian economist, not a Chicagoan, not a Public Choicer, not an anything—except a Hayekian. So much of my vi- sion of reality, of economics, and of law is influenced by Hayek’s works that I cannot imagine how I would see the world had I not encountered Hayek as an undergraduate economics student. I do not always agree with Hayek. I don’t share, for exam- ple, his skepticism of flexible exchange rates. But my world view— my weltanschauung—is solidly Hayekian. * Chairman and Professor, Department of Economics, George Mason University. B.A. Nicholls State University, Ph.D. Auburn University, J.D. University of Virginia. I thank Karol Boudreaux for very useful comments on an earlier draft. 1 Richard A. Posner, Hayek, Law, and Cognition, 1 NYU J. L. & LIBERTY 147 (2005). 2 http://www.cafehayek.com (last visited July 26, 2006). 157 158 NYU Journal of Law & Liberty [Vol. 2:157 I have also long admired Judge Posner’s work. (Indeed, I regard Posner’s Economic Analysis of Law3 as an indispensable resource.) Like so many other people, I can only admire—usually with my jaw to the ground—Posner’s vast range of knowledge, his genius, and his ability to spit out fascinating insights much like I imagine Vesuvius spitting out lava.
    [Show full text]
  • Market Externalities of Large Unemployment Insurance Extension Programs
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Lalive, Rafael; Landais, Camille; Zweimüller, Josef Working Paper Market Externalities of Large Unemployment Insurance Extension Programs IZA Discussion Papers, No. 7650 Provided in Cooperation with: IZA – Institute of Labor Economics Suggested Citation: Lalive, Rafael; Landais, Camille; Zweimüller, Josef (2013) : Market Externalities of Large Unemployment Insurance Extension Programs, IZA Discussion Papers, No. 7650, Institute for the Study of Labor (IZA), Bonn This Version is available at: http://hdl.handle.net/10419/90053 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort
    [Show full text]