nicholson微观经济理论（答案+ppt+习题库）-240-03-033593-0

EXTERNALITIESANDPUBLICGOODSINCHAPTER17WELOOKEDBRIEYATAFEWPROBLEMSTHATMAYINTERFEREWITHTHEALLOCATIONALEFCIENCYOFPERFECTLYCOMPETITIVEMARKETSHEREWEWILLEXAMINETWOOFTHOSEPROBLEMS,EXTERNALITIESANDPUBLICGOODS,INMOREDETAILTHISEXAMINATIONHASTWOPURPOSESFIRST,WEWISHTOSHOWCLEARLYWHYTHEEXISTENCEOFEXTERNALITIESANDPUBLICGOODSMAYDISTORTTHEALLOCATIONOFRESOURCESINSODOINGITWILLBEPOSSIBLETOILLUSTRATESOMEADDITIONALFEATURESOFTHETYPEOFINFORMATIONTHATISPROVIDEDBYCOMPETITIVEPRICESANDSOMEOFTHECIRCUMSTANCESTHATMAYDIMINISHTHEUSEFULNESSOFTHATINFORMATIONOURSECONDREASONFORLOOKINGMORECLOSELYATEXTERNALITIESANDPUBLICGOODSISTOSUGGESTWAYSINWHICHTHEALLOCATIONALPROBLEMSTHEYPOSEMIGHTBEMITIGATEDWEWILLSEETHAT,ATLEASTINSOMECASES,THEEFCIENCYOFCOMPETITIVEMARKETOUTCOMESMAYBEMOREROBUSTTHANMIGHTHAVEBEENANTICIPATED24CHAPTERDENINGEXTERNALITIESEXTERNALITIESOCCURBECAUSEECONOMICAGENTSHAVEEFFECTSONTHIRDPARTIESTHATARENOTREECTEDINMARKETTRANSACTIONSCHEMICALMAKERSSPEWINGTOXICFUMESONTHEIRNEIGHBORS,JETPLANESWAKINGUPPEOPLE,ORMOTORISTSLITTERINGTHEHIGHWAYARE,FROMANECONOMICPOINTOFVIEW,ALLENGAGINGINTHESAMESORTOFACTIVITYTHEYAREHAVINGADIRECTEFFECTONTHEWELLBEINGOFOTHERSTHATISOUTSIDEDIRECTMARKETCHANNELSSUCHACTIVITIESMIGHTBECONTRASTEDTOTHEDIRECTEFFECTSOFMARKETSWHENICHOOSETOPURCHASEALOAFOFBREAD,FOREXAMPLE,IPERHAPSIMPERCEPTIBLYRAISETHEPRICEOFBREADGENERALLY,ANDTHATMAYAFFECTTHEWELLBEINGOFOTHERBREADBUYERSBUTSUCHEFFECTS,BECAUSETHEYAREREECTEDINMARKETPRICES,ARENOTTRUEEXTERNALITIESANDDONOTAFFECTTHEMARKETSABILITYTOALLOCATERESOURCESEFCIENTLY1RATHER,THERISEINTHEPRICEOFBREADTHATRESULTSFROMMYINCREASEDPURCHASEISANACCURATEREECTIONOFSOCIETALPREFERENCES,ANDTHEPRICERISEHELPSENSURETHATTHERIGHTMIXOFPRODUCTSISPRODUCEDTHATISNOTTHECASEFORTOXICCHEMICALDISCHARGES,JETNOISE,ORLITTERINTHESECASES,MARKETPRICESOFCHEMICALS,AIRTRAVEL,ORDISPOSABLECONTAINERSMAYNOTACCURATELYREECTACTUALSOCIALCOSTSBECAUSETHEYMAYTAKENOACCOUNTOFTHEDAMAGEBEINGDONETOTHIRDPARTIESINFORMATIONBEINGCONVEYEDBYMARKETPRICESISFUNDAMENTALLYINACCURATE,LEADINGTOAMISALLOCATIONOFRESOURCESASASUMMARY,THEREFORE,WEHAVEDEVELOPEDTHEFOLLOWINGDENITIONEXTERNALITYANEXTERNALITYOCCURSWHENEVERTHEACTIVITIESOFONEECONOMICAGENTAFFECTTHEACTIVITIESOFANOTHERAGENTINWAYSTHATARENOTREECTEDINMARKETTRANSACTIONSBEFOREANALYZINGINDETAILWHYFAILINGTOTAKEEXTERNALITIESINTOACCOUNTCANLEADTOAMISALLOCATIONOFRESOURCES,WEWILLEXAMINEAFEWEXAMPLESTHATMAYCLARIFYTHENATUREOFTHEPROBLEMINTERRMEXTERNALITIESTOILLUSTRATETHEEXTERNALITYISSUEINITSSIMPLESTFORM,CONSIDERTWORMSONEPRODUCINGGOODXANDTHEOTHERPRODUCINGGOODYWHEREEACHRMUSESONLYASINGLEINPUT,LABORTHEPRODUCTIONOFGOODXISSAIDTOHAVEANEXTERNALEFFECTONTHEPRODUCTIONOFYIFTHEOUTPUTOFYDEPENDSNOTONLYONTHEINPUTSCHOSENBYTHEYENTREPRENEURBUTALSOONTHELEVELATWHICHTHEPRODUCTIONOFXISCARRIEDONNOTATIONALLY,THEPRODUCTIONFUNCTIONFORGOODYCANBEWRITTENASYH11005FK,LX241DEFINITION660PARTVIIILIMITSOFTHEMARKET1SOMETIMESEFFECTSOFONEECONOMICAGENTONANOTHERTHATTAKEPLACETHROUGHTHEMARKETSYSTEMARETERMEDPECUNIARYEXTERNALITIESTODIFFERENTIATESUCHEFFECTSFROMTHETECHNOLOGICALEXTERNALITIESWEAREDISCUSSINGHERETHEUSEOFTHETERMEXTERNALITIESWILLREFERONLYTOTHELATTERTYPE,BECAUSETHESEARETHEONLYTYPEWITHCONSEQUENCESFORTHEEFCIENCYOFRESOURCEALLOCATIONBYCOMPETITIVEMARKETSWHEREXAPPEARSTOTHERIGHTOFTHESEMICOLONINTHEEQUATIONTOSHOWTHATITISANEFFECTONPRODUCTIONOVERWHICHTHEYENTREPRENEURHASNOCONTROL2ASANEXAMPLE,SUPPOSETHETWORMSARELOCATEDONARIVER,WITHRMYBEINGDOWNSTREAMFROMXSUPPOSERMXPOLLUTESTHERIVERINITSPRODUCTIVEPROCESSTHENTHEOUTPUTOFRMYMAYDEPENDNOTONLYONTHELEVELOFINPUTSITUSESITSELF,BUTALSOONTHEAMOUNTOFPOLLUTANTSOWINGPASTITSFACTORYTHELEVELOFPOLLUTANTS,INTURN,ISDETERMINEDBYTHEOUTPUTOFRMXINTHEPRODUCTIONFUNCTIONSHOWNBYEQUATION241,THEOUTPUTOFRMXWOULDHAVEANEGATIVEMARGINALPHYSICALPRODUCTIVITYH11128Y/H11128XH110210INCREASESINXOUTPUTWOULDCAUSELESSYTOBEPRODUCEDINTHENEXTSECTIONWESHALLRETURNTOANALYZETHISCASEMOREFULLYASITISREPRESENTATIVEOFMOSTSIMPLETYPESOFEXTERNALITIESBENECIALEXTERNALITIESTHERELATIONSHIPBETWEENTWORMSMAYBEBENECIALMOSTEXAMPLESOFSUCHPOSITIVEEXTERNALITIESARERATHERBUCOLICINNATUREPERHAPSTHEMOSTFAMOUS,PROPOSEDBYJMEADE,INVOLVESTWORMS,ONEPRODUCINGHONEYRAISINGBEESANDTHEOTHERPRODUCINGAPPLES3BECAUSETHEBEESFEEDONAPPLEBLOSSOMS,ANINCREASEINAPPLEPRODUCTIONWILLIMPROVEPRODUCTIVITYINTHEHONEYINDUSTRYTHEBENECIALEFFECTSOFHAVINGWELLFEDBEESISAPOSITIVEEXTERNALITYTOTHEBEEKEEPERINTHENOTATIONOFEQUATION241,H11128Y/H11128XWOULDNOWBEPOSITIVEINTHEUSUALPERFECTLYCOMPETITIVECASE,THEPRODUCTIVEACTIVITIESOFONERMHAVENODIRECTEFFECTONTHOSEOFOTHERRMSH11128Y/H11128XH110050EXTERNALITIESINUTILITYEXTERNALITIESALSOCANOCCURIFTHEACTIVITIESOFANECONOMICAGENTDIRECTLYAFFECTANINDIVIDUALSUTILITYMOSTCOMMONEXAMPLESOFENVIRONMENTALEXTERNALITIESAREOFTHISTYPEFROMANECONOMICPERSPECTIVEITMAKESLITTLEDIFFERENCEWHETHERSUCHEFFECTSARECREATEDBYRMSINTHEFORM,SAY,OFTOXICCHEMICALSORJETNOISEORBYOTHERINDIVIDUALSLITTEROR,PERHAPS,THENOISEFROMALOUDRADIOINALLSUCHCASESTHEAMOUNTOFSUCHACTIVITIESWOULDENTERDIRECTLYINTOTHEINDIVIDUALSUTILITYFUNCTIONINMUCHTHESAMEWAYASRMXSOUTPUTENTEREDINTORMYSPRODUCTIONFUNCTIONINEQUATION241ASINTHECASEOFRMS,SUCHEXTERNALITIESMAYSOMETIMESBEBENECIALYOUMAYACTUALLYLIKETHESONGBEINGPLAYEDONYOURNEIGHBORSRADIOSO,AGAIN,ASITUATIONOFNOEXTERNALITIESCANBEREGARDEDASSIMPLYTHEMIDDLEGROUNDINWHICHOTHERAGENTSACTIVITIESHAVENODIRECTEFFECTONINDIVIDUALSUTILITIESONESPECIALTYPEOFUTILITYEXTERNALITYRELEVANTTOTHEANALYSISOFSOCIALCHOICESARISESWHENONEINDIVIDUALSUTILITYDEPENDSDIRECTLYONTHEUTILITYOFSOMEONEELSEIF,FOREXAMPLE,SMITHCARESABOUTJONESSWELFARE,WECOULDWRITEHISORHERUTILITYFUNCTIONUSASUTILITYH11005USX1,XNUJ,242WHEREX1,XNARETHEGOODSTHATSMITHCONSUMESANDUJISJONESSUTILITYIFSMITHISALTRUISTICANDWANTSJONESTOBEWELLOFFASMIGHTHAPPENIFJONESWEREACHAPTER24EXTERNALITIESANDPUBLICGOODS6612WESHALLNDITNECESSARYTOREDENETHEASSUMPTIONOF“NOCONTROL”CONSIDERABLYASTHEANALYSISOFTHISCHAPTERPROCEEDS3JMEADE,“EXTERNALECONOMIESANDDISECONOMIESINACOMPETITIVESITUATION,”ECONOMICJOURNAL62MARCH19525467CLOSERELATIVE,H11128US/H11128UJWOULDBEPOSITIVEIF,ONTHEOTHERHAND,SMITHWEREENVIOUSOFJONES,ITMIGHTBETHECASETHATH11128US/H11128UJWOULDBENEGATIVETHATIS,IMPROVEMENTSINJONESSUTILITYMAKESMITHWORSEOFFTHEMIDDLEGROUNDBETWEENALTRUISMANDENVYWOULDOCCURIFSMITHWEREINDIFFERENTTOJONESSWELFAREH11128US/H11128UJH110050,ANDTHATISWHATWEHAVEUSUALLYASSUMEDTHROUGHOUTTHISBOOKFORABRIEFDISCUSSION,SEETHEEXTENSIONSTOCHAPTER3PUBLICGOODSEXTERNALITIESGOODSTHATARE“PUBLIC”OR“COLLECTIVE”INNATUREWILLBETHEFOCUSFOROURANALYSISINTHESECONDHALFOFTHISCHAPTERTHEDENINGCHARACTERISTICOFTHESEGOODSISNONEXCLUSIONTHATIS,ONCETHEGOODSAREPRODUCEDEITHERBYTHEGOVERNMENTORBYSOMEPRIVATEENTITY,THEYPROVIDEBENETSTOANENTIREGROUP,PERHAPSTOEVERYONEITISTECHNICALLYIMPOSSIBLETORESTRICTTHESEBENETSTOTHESPECICGROUPOFINDIVIDUALSWHOPAYFORTHEM,SOTHEBENETSAREAVAILABLETOALLASWEMENTIONEDINCHAPTER17,NATIONALDEFENSEPROVIDESTHETRADITIONALEXAMPLEONCEADEFENSESYSTEMISESTABLISHED,ALLINDIVIDUALSINSOCIETYAREPROTECTEDBYITWHETHERTHEYWISHTOBEORNOTANDWHETHERTHEYPAYFORITORNOTCHOOSINGTHERIGHTLEVELOFOUTPUTFORSUCHAGOODCANBEATRICKYPROCESS,BECAUSEMARKETSIGNALSWILLBEINACCURATEEXTERNALITIESANDALLOCATIVEINEFCIENCYEXTERNALITIESLEADTOINEFCIENTALLOCATIONSOFRESOURCESBECAUSEMARKETPRICESDONOTACCURATELYREECTTHEADDITIONALCOSTSIMPOSEDONORBENETSPROVIDEDTOTHIRDPARTIESTOILLUSTRATETHESEINEFCIENCIESREQUIRESAGENERALEQUILIBRIUMMODELBECAUSEINEFCIENTALLOCATIONSINONEMARKETTHROWINTODOUBTTHEEFCIENCYOFMARKETDETERMINEDOUTCOMESEVERYWHEREHEREWECHOOSEAVERYSIMPLE,ANDINSOMEWAYS,RATHERODDGENERALEQUILIBRIUMMODELTHATALLOWSUSTOMAKETHESEPOINTSINACOMPACTWAYSPECICALLY,WEASSUMETHEREISONLYONEPERSONINOURSIMPLEECONOMYANDTHATHISORHERUTILITYDEPENDSONTHEQUANTITIESOFXANDYCONSUMEDCONSUMPTIONLEVELSOFTHESETWOGOODSAREDENOTEDBYXCANDYCSO,UTILITYH11005UXC,YC243THISPERSONHASINITIALSTOCKSOFXANDYDENOTEDBYXANDYANDCANEITHERCONSUMETHESEDIRECTLYORUSETHEMASINTERMEDIARYGOODSINPRODUCTIONTOSIMPLIFYMATTERS,WEASSUMETHATGOODXISPRODUCEDUSINGONLYGOODY,ACCORDINGTOTHEPRODUCTIONFUNCTIONXOH11005FYI,244WHERESUBSCRIPTS“O”REFERTOOUTPUTSAND“I”REFERTOINPUTSTOILLUSTRATEEXTERNALITIESWEASSUMETHATTHEOUTPUTOFGOODYDEPENDSNOTONLYONHOWMUCHXISUSEDASANINPUTINTHEPRODUCTIONPROCESS,BUTALSOONTHEXPRODUCTIONLEVELITSELFHENCETHISWOULDMODELASITUATION,SAY,WHEREYISDOWNRIVERFROMRMXANDMUSTCOPEWITHTHEPOLLUTIONTHATPRODUCTIONOFXOUTPUTCREATESTHEPRODUCTIONFUNCTIONFORYISGIVENBYYOH11005GXI,XO,245WHEREG1H110220MOREXINPUTPRODUCESMOREYOUTPUT,BUTG2H110210ADDITIONALXOUTPUTREDUCESYOUTPUTBECAUSEOFTHEEXTERNALITYINVOLVED662PARTVIIILIMITSOFTHEMARKETTHEQUANTITIESOFEACHGOODINTHISECONOMYARECONSTRAINEDBYTHEINITIALSTOCKSAVAILABLEANDBYTHEADDITIONALPRODUCTIONTHATTAKESPLACEXCH11001XIH11005XOH11001X246YCH11001YIH11005YOH11001Y247FINDINGTHEEFCIENTALLOCATIONTHEECONOMICPROBLEMFORTHISSOCIETY,THEN,ISTOMAXIMIZEUTILITYSUBJECTTOTHEFOURCONSTRAINTSREPRESENTEDBYEQUATIONS244247TOSOLVETHISPROBLEMWEMUSTINTRODUCEFOURLAGRANGIANMULTIPLIERSTHELAGRANGIANEXPRESSIONFORTHISMAXIMIZATIONPROBLEMISH5112H11005UXC,YCH11001H92611FYIH11002XOH11001H92612GXI,XOH11002YO248H11001H92613XCH11001XIH11002XOH11002XH11001H92614YCH11001YIH11002YOH11002YANDTHESIXRSTORDERCONDITIONSFORAMAXIMUMAREH11128H5112/H11128XCH11005U1H11001H92613H110050IH11128H5112/H11128YCH11005U2H11001H92614H110050IIH11128H5112/H11128XIH11005H92612G1H11001H92613H110050IIIH11128H5112/H11128YIH11005H92611FYH11001H92614H110050IV249H11128H5112/H11128XOH11005H11002H92611H11001H92612G2H11002H92613H110050VH11128H5112/H11128YOH11005H11002H92612H11002H92614H110050VIELIMINATINGTHEH9261SFROMTHESEEQUATIONSISAFAIRLYSIMPLEPROCESSTAKINGTHERATIOOFEQUATIONSIANDIIYIELDSTHEFAMILIARRESULTMRSH11005U1/U2H11005H92613/H926142410BUTEQUATIONSIIIANDVIALSOIMPLYMRSH11005H92613/H92614H11005H92612G1/H92612H11005G12411HENCEOPTIMALITYINYPRODUCTIONREQUIRESTHATTHEINDIVIDUALSMRSISCONSUMPTIONEQUALTHEMARGINALPRODUCTIVITYOFXINTHEPRODUCTIONOFYTHISCONCLUSIONREPEATSTHERESULTFROMCHAPTER17,WHEREWESHOWEDTHATEFCIENTOUTPUTCHOICEREQUIRESTHATDY/DXINCONSUMPTIONBEEQUALTODY/DXINPRODUCTIONTOACHIEVEEFCIENCYINXPRODUCTIONWEMUSTALSOCONSIDERTHEEXTERNALITYTHATTHISPRODUCTIONPOSESTOYCOMBININGEQUATIONSIVVIGIVESMRSH11005H92613/H92614H11005H11002H92611H11001H92612G2/H92614H11005H11002H92611/H92614H11001H92612G2/H926142412H110051/FYH11002G2INTUITIVELY,THISEQUATIONREQUIRESTHATTHEINDIVI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XALSOREPRESENTSTHATGOODSPRIVATEMARGINALCOSTSOFPRODUCTIONMCWHENTHEDEMANDFORXISGIVENBYDD,THEMARKETEQUILIBRIUMWILLOCCURATX1THEEXTERNALCOSTSINVOLVEDINXPRODUCTIONCREATEADIVERGENCEBETWEENPRIVATEMARGINALCOSTSMCANDOVERALLSOCIALMARGINALCOSTSMCH11032THEVERTICALDISTANCEBETWEENTHETWOCURVESREPRESENTSTHECOSTSTHATXPRODUCTIONPOSESFORTHIRDPARTIESINOUREXAMPLES,ONLYONRMYNOTICETHATTHEPERUNITCOSTSOFTHESEEXTERNALITIESNEEDNOTBECONSTANT,INDEPENDENTOFXOUTPUTINTHEGURE,FOREXAMPLE,THESIZEOFTHESEEXTERNALCOSTSRISESASXOUTPUTEXPANDSTHATIS,MCH11032ANDMCBECOMEFURTHERAPARTATTHEMARKETDETERMINEDOUTPUTLEVEL,X1,THECOMPREHENSIVESOCIALMARGINALCOSTEXCEEDSTHEMARKETPRICE,P1,THEREBYINDICATINGTHATTHEPRODUCTIONOFXHASBEENPUSHED“TOOFAR”ITISCLEARFROMTHEGURETHATTHEOPTIMALOUTPUTLEVELISX2ATWHICHTHEMARKETPRICEPAIDFORTHEGOOD,P2,NOWREECTSALLCOSTSASISTHECASEFORANYTAX,IMPOSITIONOFAPIGOVIANTAXWOULDCREATEAVERTICALWEDGEBETWEENTHEDEMANDANDSUPPLYCURVESFORGOODXINFIGURE241THISOPTIMALTAXISSHOWNASTIMPOSITIONOFTHISTAXSERVESTOREDUCEOUTPUTTOX2,THESOCIALOPTIMUMTAXCOLLECTIONSEQUALTHEPRECISEAMOUNTOFEXTERNALHARMTHATXPRODUCTIONCAUSESTHESECOLLECTIONSMIGHTBEUSEDTOCOMPENSATERMYFORTHESECOSTS,BUTTHATISNOTCRUCIALTOTHEANALYSISNOTICEHERETHATTHETAXMUSTBESETATTHELEVELOFHARMTHATPREVAILSATTHEOPTIMUMTHATIS,ATX2,NOTATTHELEVELOFHARMATTHEORIGINALMARKETEQUILIBRIUMX1THATPOINTISALSOMADEINTHENEXTEXAMPLEANDMORECOMPLETELYINTHENEXTSECTIONBYRETURNINGTOOURSIMPLEGENERALEQUILIBRIUMMODELEXAMPLE242APIGOVIANTAXONNEWSPRINTTHEINEFCIENCYINEXAMPLE241ARISESBECAUSETHEUPSTREAMNEWSPRINTPRODUCERRMXTAKESNOACCOUNTOFTHEEFFECTTHATITSPRODUCTIONHASONRMYASUITABLY666PARTVIIILIMITSOFTHEMARKET4ACPIGOU,THEECONOMICSOFWELFARE,LONDONMACMILLAN,1920PIGOUALSORECOGNIZEDTHEIMPORTANCEOFSUBSIDIZINGGOODSTHATYIELDPOSITIVEEXTERNALITIES5WEDONOTDISCUSSPURELYREGULATORYSOLUTIONSHERE,ALTHOUGHTHESTUDYOFSUCHSOLUTIONSFORMSANIMPORTANTPARTOFMOSTCOURSESINENVIRONMENTALECONOMICSSEEWJBAUMOLANDWEOATES,THETHEORYOFENVIRONMENTALPOLICY,2NDEDCAMBRIDGECAMBRIDGEUNIVERSITYPRESS,1988ANDTHEEXTENSIONSTOTHISCHAPTERCHOSENTAXONRMXCANCAUSEITTOREDUCEITSHIRINGTOALEVELATWHICHTHEEXTERNALITYVANISHESBECAUSETHERIVERCANABSORBTHEPOLLUTANTSGENERATEDWITHANOUTPUTOFXH1100538,000,WEMIGHTCONSIDERIMPOSINGATAXTONTHERMSOUTPUTTHATENCOURAGESITTOREDUCEOUTPUTTOTHISLEVELBECAUSEOUTPUTWILLBE38,000IFLXH11005361,WECANCALCULATETFROMTHELABORDEMANDCONDITION1H11002TMPLH110051H11002T1,000361H110025H11005502424ORTH11005052425SUCHA5PERCENTTAXWOULDEFFECTIVELYREDUCETHEPRICERMXRECEIVESFORITSNEWSPRINTTO95ANDPROVIDEITWITHANINCENTIVETOREDUCEITSHIRINGBY39WORKERSNOW,BECAUSETHERIVERCANHANDLEALLOFTHEPOLLUTANTSXPRODUCES,THEREISNOEXTERNALITYINTHEPRODUCTIONFUNCTIONOFRMYITWILLHIRE400WORKERSANDPRODUCE40,000FEETOFNEWSPRINTPERDAYNOTICETHATTOTALNEWSPRINTOUTPUTISNOW78,000,ASIGNICANTLYHIGHERGURETHANWOULDBEPRODUCEDINTHEUNTAXEDSITUATIONTHETAXATIONSOLUTIONHEREPROVIDESACONSIDERABLEIMPROVEMENTINTHEEFCIENCYOFRESOURCEALLOCATIONCHAPTE