4 - Public Goods

Question 1

2 main characteristics of public goods

Answer 1

Question 2

Examples of pure and impure public goods

Answer 2

Question 3

Utility set up with public goods

Answer 3

Question 4

Compare the first-best allocations in two cases:

1) G is a pure private good
2) G is a pure public good

Answer 4

Question 5

Efficiency if G is a private good

When is efficiency achieved?

Answer 5

Question 6

The Samuelson Rule: 1st best if G is pure public good

Answer 6

Question 7

Suggest the optimal allocation of public good

Answer 7

Question 8

Shows, in equation, that private provision is inefficient

Answer 8

Question 9

How can we construct a Pareto improvement when private provision is pareto inefficient?

Answer 9

Question 10

1) Explain free-riding and market provision of goods
2) Examples of free-riding

Answer 10

Question 11

Limitations of Samuelson rule

Answer 11

Question 12

Explain Lindhal pricing

Answer 12

Question 13

**Constraints of Lindahl Pricing

(PS4)

Answer 13

Question 14

Empirical evidence on crowding out:

1) What to estimate and how
2) Difficulty of experiment

Answer 14

Question 15

Explain Gruber & Hungerman (2005) experiment on analysing the effect of crowding out

Answer 15

Question 16

Explain Andreoni & Payne (2003, 2008) experiment on crowding out

Answer 16

Question 17

Empirical evidence on free-riding:

Marwell & Ames 1981 - experiment design

Answer 17

Question 18

Empirical evidence on free-riding:

Marwell & Ames 1981 - result

Answer 18

Question 19

Prosocial behaviour and Intrinsic motivation

Answer 19

Question 20

Experiment to show incentives for prosocial behaviour and its interpretation

Answer 20

Question 21

Summary of public goods lecture

Answer 21