Discussion quiz
Lisa1314
Quiz42.pptxQuiz #4
ECON 3314
Cost-Benefit Revolution
See Cass Sunstein and Gruber Chapter 8
This is a Hicks-Kaldor definition of efficiency, Not Pareto Efficiency
3 Steps to Benefit Cost Analysis
Identify the impacts
Classify the impacts as Benefits, Costs or Transfer
Evaluate the impacts
Gruber Chapter 10 & 11 Reading Assigned
Chapter 10 pp. 281-291 and pp. 296-300.
Chapter 11 pp. 305-310 and pp. 314-323
Tiebout Sorting/Vouchers
Question: Tiebout, see Gruber Ch. 10 Voucher Debate in Gruber Ch. 11
“The argument that a voucher system will increase the social efficiency of primary schooling is weaken if there is a high degree of Tiebout sorting on the basis of race and income status.”
Agree or Disagree with statement above, given that there are significant positive externalities associated with primary education and local property taxes are the main source of primary school funding in the United States.
California’s Serrano v. Priest
See Application Box on page 299 of Gruber pdf for Chapters 10 & 11
