PPT-5a – Price Controls and Negative Externalities

This web quiz may appear as two pages on tablets and laptops I recommend that you view it as one page by clicking on the open book icon at the bottom of the page 5a Price Ceilings and Price Floors. Chapter 8. Outline. Price Ceilings. Rent Controls (Optional Section). Arguments for Price Ceilings. Universal Price Controls. Price Floors. 2. Special Interest Groups. 3. Gasoline at $.05/Gallon. Getting in the Way of the Invisible Hand?. A Conjoint Analysis of Transportation Fuel Preferences. Matthew . Winden. and T.C. . Haab. , Ph.D.. Agricultural, Environmental, and Development Economics. The Ohio State University. Outline. Motivation . 10. Externalities . Recall: Adam Smith’s “invisible hand” of the marketplace leads self-interested buyers and sellers in a market to maximize the total benefit that society can derive from a market. . 05. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Market Failures. Market fails to produce the right amount of the product. Resources may be:. Over-allocated. Chapter . 8 (Chapter 5). Outline. Price Ceilings. Rent Controls (Optional Section). Arguments for Price Ceilings. Universal Price Controls. Price Floors. 2. Introduction. Price controls are laws . making it . F*** you!. - Guns N’ Roses. Externalities. An . externality. is an uncompensated cost or benefit that the decision-maker imposes on others.. An . external benefit. or . positive externality. is a benefit that comes to individuals other than the decision-maker, for which the decision-maker is not compensated.. Market failure. is a concept within economic theory where the allocation of goods and services by a . free market. is not efficient. (less than optimum allocation of resources). Causes of Market Failure. Lecture 9. Chapter 16. Externalities. 2017 Economics 101 CCC. Content. Explain how externalities arise. Explain why negative externalities lead to inefficient overproduction and the actions that might achieve an efficient outcome. What is an externality?. the uncompensated impact of one person's actions on the well-being of a bystander (or 3. rd. party). Two Types of Externalities. Negative Externality. If the impact on the bystander is . PPA . 670. Policy Issue Analysis. Dr. Butz. Economic Freedom. Economic . freedom (from an economic efficiency standpoint) . refers to the degree to which private individuals are able to carry out voluntary exchange without government involvement. Negative controls, . and . Empirical calibration. Martijn Schuemie. Janssen R&D. OHDSI. UCLA. Trouble with observational research. 2. Residual study bias. 3. Rush et al., 2018. How to choose covariates to adjust for?. s. (. CH. 4007. ). Lectu. r. e. . 6. Market failure: public goods and externalities. Lecturer. :. . Xian. Learning Objectives. Explain why free markets sometimes fail to produce optimal outcomes.. Ing. David Slavata, Ph.D., . Public Finance A. The. Market . Failures. Public . Goods. Externalities. Imperfect. . Competition. Asymmetric. . Information. The. . Classification. . of. . goods. Laura Jackson Young. Market Efficiency. ‘Markets are usually a good way to organize economic activity’. In absence of market failures. , the competitive market outcome is efficient. Maximizes total surplus.