1907 Ch9 Externalities and Public Goods Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch9 Externalities and Public Goods
0 10-2 砂 Topics to be Discussed ·Externalities Ways of Correcting Market Failure Externalities and Property Rights Common Property Resources Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 10-2 Topics to be Discussed • Externalities • Ways of Correcting Market Failure • Externalities and Property Rights • Common Property Resources
1907 10-3 Topics to be Discussed ·Public Goods Private Preferences for Public Goods Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 10-3 Topics to be Discussed • Public Goods • Private Preferences for Public Goods
10-4 0 © 9.1 Externalities ·Negative -Action by one party imposes a cost on another party ·Positive -Action by one party benefits another party Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 10-4 9.1 Externalities • Negative – Action by one party imposes a cost on another party • Positive – Action by one party benefits another party
1907 10-5 External Cost ·Scenario -Steel plant dumping waste in a river The entire steel market effluent can be reduced by lowering output(fixed proportions production function) Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 10-5 External Cost • Scenario – Steel plant dumping waste in a river – The entire steel market effluent can be reduced by lowering output (fixed proportions production function)