Study Questions of Friday's Test

PS 4820 Midterm Study Questions
Spring 2005

You will be asked to write on 1 of the following questions. I will give you two to choose from and you will choose which one to answer. These are “long answer” questions. I expect more than three paragraphs. You should spend half of the class period answering it.

1. Virginia Postrel examines “what sort of rules enliven our world--and what sort stifle it.” How do you apply her ideas to environmental policy?

2. What conditions must exist for the Coase theory to be applicable? When might Pigouvian approaches be more applicable? What are the shortcomings of each?

3. What are the advantages and shortcomings of the common law and the environment? What are the advantages and shortcomings of ‘thou shalt” and “thou shalt not” regulation? How effective is non-intervention or appeals to ethics, norms, and customs?

4. “The principle justification for public policy intervention lies in the frequent and numerous shortcomings of market outcomes.” – Charles Wolf

Do you agree with Wolf? What are the factors that lead to market failure? What are the causes of government failure? When is government intervention justified?

5. On page 4 of Who Owns the Environment, De Alessi claims, “The logical starting point for addressing an environmental problem is to identify the institutions that give rise to it and then explore how they might be modified to yield a preferred outcome.” Do you agree that institutions are the logical starting point? Why or why not?

Short Answer Questions
I will choose three of these for you to answer. Answer them in fewer than three paragraphs. One paragraph might do but two are probably better. They are worth 50% of your grade.

1. Explain the difference between Pigou’s and Coase’s definition of externalities?

2. What are the implications of bootleggers and Baptists for environmental policy?

3. Is a commons at risk simply because “people are no damn good?” That is, what is the real problem with a commons?

4. What sets apart the “new conservationist” from the “old conservationist?”

5. Are property rights static? Explain.