Solutions Manual to Accompany Intermediate Public Economics, Second Edition 0262518481, 9780262518482

Table of contents :
Contents
I PUBLIC ECONOMICS AND THE PUBLIC SECTOR
1 An Introduction to Public Economics
2 Equilibrium and Efficiency
3 Behavioral Economics
II GOVERNMENT
4 Public Sector Statistics
5 Theories of the Public Sector
III DEPARTURES FROM EFFICIENCY
6 Public Goods
7 Club Goods and Local Public Goods
8 Externalities
9 Imperfect Competition
10 Asymmetric Information
IV POLITICAL ECONOMY
11 Voting
12 Rent-Seeking
V EQUITY AND DISTRIBUTION
13 Optimality and Comparability
14 Inequality and Poverty
VI TAXATION
15 Commodity Taxation
16 Income Taxation
17 Tax Evasion
18 The Limits to Redistribution
VII MULTIPLE JURISDICTIONS
19 Fiscal Federalism
20 Fiscal Competition
21 Issues in International Taxation
VIII ISSUES OF TIME
22 Intertemporal Efficiency
23 Social Security
24 Economic Growth
IX APPLICATIONS
25 Cost–Benefit Analysis
26 Economics of Climate Policy

Citation preview

Solutions Manual to Accompany Intermediate Public Economics, second edition

Solutions Manual to Accompany Intermediate Public Economics, second edition Nigar Hashimzade, Jean Hindriks, and Gareth D. Myles

The MIT Press Cambridge, Massachusetts London, England

© 2013 Massachusetts Institute of Technology

All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher.

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ISBN: 978-0-262-51848-2 (paperback: alk. paper) 10

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Contents I PUBLIC ECONOMICS AND THE PUBLIC SECTOR 1 2 3

An Introduction to Public Economics Equilibrium and Efficiency Behavioral Economics

II

GOVERNMENT

4 5

Public Sector Statistics Theories of the Public Sector

3 17 53 69 81

III DEPARTURES FROM EFFICIENCY 6 7 8 9 10

Public Goods Club Goods and Local Public Goods Externalities Imperfect Competition Asymmetric Information

107 133 155 183 219

IV POLITICAL ECONOMY 11 Voting 12 Rent-Seeking

247 265

V EQUITY AND DISTRIBUTION 13 Optimality and Comparability 14 Inequality and Poverty VI 15 16 17 18

285 311

TAXATION Commodity Taxation Income Taxation Tax Evasion The Limits to Redistribution

345 373 411 433

VII MULTIPLE JURISDICTIONS 19 Fiscal Federalism 20 Fiscal Competition 21 Issues in International Taxation

447 477 499

VIII ISSUES OF TIME 22 Intertemporal Efficiency 23 Social Security 24 Economic Growth IX

523 537 561

APPLICATIONS

25 Cost–Benefit Analysis 26 Economics of Climate Policy

595 609

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Output Indifference curve

Production frontier Labor

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Variable

Flanders

French-sp. comm.

Flanders

French-sp. comm.

ESCS of pupil

0:136 (4:84) 1:786 (13:96)

0:146 (3:19) 1:742 (12:86)

19:593 (293:27) 5033:719

18:770 (213:46) 2437:750

0:114 (4:30) 1:735 (13:49) 0:413 ( 2:60) 0:509 ( 3:04) 0:515 ( 3:31) 19:654 (309:23) 4997:498

0:110 (2:45) 1:658 (13:06) 0:284 ( 2:73) 0:349 ( 2:88) 0:488 ( 2:83) 18:857 (212:34) 2417:368

61:060% 0:670% 3430 238

59:130% 0:841% 1517 141

61:060% 2:824% 3430 238

58:342% 3:806% 1517 141

Sub-school average ESCS First-generation immigrant Second-generation immigrant Immigrant that does not speak o¢ cial Belgian language at home Constant Log likelihood Variation explained: Between sub-schools Within sub-schools Number of level 1 units Number of level 2 units

Table 14.7: Inequality: a multilevel regression approach. Dependent variable: …rst principal component of …rst plausible value of test scores in reading, math and science

Figure 14.11: Distribution of PISA 2006 test scores by ESCS quartile (Belgium: Flanders)



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Figure 14.12: Distribution of PISA 2006 test scores by ESCS quartile(Belgium: French-speaking community)

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Output f (k ) = log(k )

[n + δ ]k sf (k )= s log(k ) sf (k )− sg = s log(k )− sg

k1

k2

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