Market failures

Readings and class materials for Monday, July 10, 2023–Friday, July 14, 2023

Readings

• 11.7–11.14 in Economy, Society, and Public Policy The CORE Team, Economy, Society, and Public Policy, 2019, https://www.core-econ.org/espp/.
• A. Danny Ellerman, “US Experience with Emissions Trading” A. Danny Ellerman, “US Experience with Emissions Trading,” CESifo DICE Report 5, no. 4 (2007): 13–16.
• The Lorax, “How Bad Can I Be?”
• Freakonomics, “Parking Is Hell,” Episode 118, March 13, 2013
• All Things Considered, “Nobel Laureate: ‘I’ve Been Wrong So Often, I Don’t Find It Extraordinary At All’,” May 8, 2012
• All Things Considered, “The Nobel Laureate Who Figured Out How To Deal With Annoying People,” September 3, 2013

Other useful resources

I pause during the “Addressing external effects” and tell you to watch a video on cap and trade systems. Here’s that video:

• Marginal Revolution University, “Trading Pollution: How Pollution Permits Paradoxically Reduce Emissions”

Slides

Download PDF of all slides

Videos

Videos for each section of the lecture are available at this YouTube playlist.

• Introduction
• Institutions, markets, and prices
• Public goods
• External effects
• Addressing external effects

You can also watch the playlist (and skip around to different sections) here: