``Business Enterprise and Public Policy'' G406, Spring 2007 (3
May
2007)
There will be a midterm (40% of grade),
and a final examination (60%). I am happy to
talk about the answers to
any test questions, but if you think that something was graded wrongly, even
something as trivial as that points were misadded, please write me up a memo
rather than telling me about it.
The midterm will be in class on February 28th. The final will be in the same
classroom,
2 hours, 8:00-10:00 a.m., Monday, April 30, cumulative over the
entire
semester.
- You can see the 2005 and 2004 and
2006 answers answers
for the first of the two midterm tests I gave in previous years.
You can see the 2004 and 2005 and 2006 answers for the second
test. Also available is the 2007 midterm and 2007 final.
- Here are old
2004 and
2005 and
2006 final exam answers
- I have starred topics from old Test 2's and finals that might be
on the 2007 midterm (Test 1 of course is on the topics from the first part of
the course).
Spring Break is the week of March 12th and 14th.
I. Overview of Regulation
1. Equilibrium and Optimality
- To read:
- For reference:
2. Market Failure and Government Failure
- To read:
- For reference:
3. The Making of a Regulation
- To read:
- For reference:
4. Antitrust Law
January 30. Introduction to Antitrust
- To read:
- For reference:
5. Oligopoly and Collusion
- To read:
- Viscusi, Chapters 5, 6: pages 101-112,
121-124 127-144, 155-164.
- The
Oligopoly Game
-
For reference:
6. Mergers
- To read:
-
For reference:
II. Price and Quantity Regulation
7. Economic Regulation.
- To read:
-
For reference:
8. Natural Monopoly
- To read:
- Viscusi, Chapter 11: pp. 401-403, 408-423.
- For reference:
9. Electric Power
- To read:
- For reference:
III. Regulation for Information and Externalities
10. Political Economy and Regulation
- To read:
11. Environmental Regulation
- To read:
- For reference:
- Powerpoint slides for chapter 21
- Water Pollution in China
- Making Nuclear Missiles Comply with EPA
Regulations
- Save Toby, the bunny-killing
extortion website.
- "Recycling Is
Garbage," John Tierney, New York Times, 30 June 1996, Sunday,
Section 6, Page 24, Column 1.
- "Scientists Revisit
Idea that a Little Poison Could Be Beneficial," Sharon Begley, The Wall
Street Journal 19 December 2003.
- "Death by Environmentalist,"
The Wall Street Journal, 29 December 2004, p. A8.
- The fisheries classroom game in pdf
- "Invisible Export a Hidden
Cost of China's Growth: Mercury Migration Turning to Coal, Nation Sends Toxic
Metal around Globe; Buildup in the Great Lakes Conveyor Belt of Bad Air,"
Matt Pottinger, Steve Stecklow, and John J. Fialka, The Wall Street
Journal, 17 December 2004, p. A1.
12. Global Warming
- To read:
- Data: NASA data on global
temperatures monthly 1880-present, and annual
temperatures, total and by hemisphere, and world weather station
data, picking points on a map (unadjusted for urbanization, etc.).
- "Some Economics of Global
Warming," Thomas C. Schelling, The American Economic Review,
82(1): 1-14 (March 1992).
- The Pew Center on Global Climate Change: Economics FAQs and Policy
FAQs, http://www.pewclimate.org/global-warming-basics/faq_s/.
- The Supreme Court opinion in Massachusetts v. EPA , in an
abridged version for you to
read and the unabridged opinion.
- A 2007 Washington Post article on carbon permit trading in Europe.
- For reference:
- Powerpoint slides on global
warming
- IPCC "Climate Change
2001: Synthesis Report; Summary for Policymakers."
- "Two Thirds
of EU Countries Set to Miss Kyoto Commitments," IPPR,
http://www.ippr.org.uk/pressreleases/?id=1863, 27 December 2005.
- "Kyoto's
'Capitalists'," The Wall Street Journal, 13 December 2004, p. A16.
- The Cato Institute: "Global Warming and
Climate Change, chapter 48, The Cato Handbook on Policy, 6th Edition
(2005), http://www.cato.org/pubs/handbook/hb109/hb_109-48.pdf.
13. Paternalistic Regulation
-
To read:
- Richard H. Thaler and Cass R. Sunstein, "Libertarian Paternalism,"
The American Economic Review, Vol. 93, No. 2, Papers and
Proceedings of the One Hundred Fifteenth Annual Meeting of the
American Economic Association, Washington, DC, January 3-5, 2003.
(May, 2003), pp. 175-179.
- State liquor-
shipping laws: the Tanford story
- Norm Stamper,
"Legalize drugs --all of them,"
Seattle Times,
http://seattletimes.nwsource.com/html/opinion/2002661006_sunstamper04.html,
December 4, 2005.
-
James Q. Wilson, "Against the
Legalization of Drugs," Commentary, February 1990, 89(2): 21-28.
- Benson B. Roe,
"Why we should
legalize drugs," http://www.druglibrary.org/schaffer/Misc/roe1.htm.
- "Does U.S. Ban
on E-Gambling Violate WTO?" Scott Miller, The Wall Street Journal ,
28 January 2004, p. B1, and "Ruling Unlikely to Deter Gaming,"Wired News,
Joanna Glasner Apr. 09, 2005; and "U.S. Ignores
WTO Ruling on Internet Gambling".
- "Ants and
Grasshoppers", Kevin A. Hassett, The Wall Street Journal , 7
February 2005, p. A.18.
- James Fitzjames Stephen, "The Doctrine of
Liberty in Its Application to Morals," Chapter IV of Liberty, Equality,
Fraternity, Hypertext by Terrence Berres, London: Smith, Elder, & Co. (1873)
(my original source here).
- "Why a London
Pol Thinks These Ladies Shouldn't Get Calls; He Asks Cellphone Companies to Hang
Up on Prostitutes; Fake Cards, CEO Numbers," David Pringle, The Wall
Street Journal, 7 February 2005, p. A.1.
- For reference:
- Powerpoint slides on morals
regulation.
- "Bankrupt Criticisms: The Bankruptcy Bill Deserves To Pass,"
http://www.nationalreview.com/comment/zywicki200503150744.asp, Todd Zywicki,
March 15, 2005. Excerpted here.
- Euthanasia: Richard Miniter,
"The Dutch Way of Death Socialized medicine helped turn doctors into killers,"
The Wall Street Journal, Saturday, April 28, 2001. Mark Bergin,
"Rogue state law: Euthanasia
advocates celebrate Oregon as a nationwide model," World, April 09, 2005,
http://www.worldmag.com/displayarticle.cfm?id=10503. Bob Barr, "Euthanasia . . . or a 'Dutch treat'" Washington Times, 26 December 2004.
- Crime
and Drug Legalization," Schaffer Library of Drug Policy,
http://www.druglibrary.org/schaffer/debate/myths/myths3.htm.
14. Product Safety and Litigation
- To read:
- For reference:
- Powerpoints for Chapter 22.
- "The Patient's Right Not to
Sue; How about a Right to Opt Out?", James D. Miller, The Weekly
Standard, 13 August 2001, Volume 6, Issue 45.
- "La Grippe of the
Trial Lawyers,"William Tucker, The Weekly Standard, 25 October 2004,
Volume 10, Issue 7.
- "Risky Riders Touting Freedom, Bikers Take
Aim at Helmet Laws Fatality Rates Are Increasing As Campaign Succeeds;
Manufacturers Bow Out Sputnik Travels to 39 States," Karen Lundegaard,
The Wall Street Journal , 30 November 2004, p. A1.
- Articles from The Wall Street Journal on drug for mental illness, lack of lupus drugs, and hearing aids.
- Pontius Pilate as bureaucrat handout
15. Regulation in the Workplace
- To read:
- For reference:
Review
Last part
of
course,
outline
Before the final, read this Carhart
excerpt.
URL: http://www.rasmusen.org/g406/0.g406.htm.
Indiana University, Department of Business Economics and Public Policy,
in the Kelley School of Business ,
BU 456, 1309 East Tenth Street,
Bloomington, Indiana 47405-1701, (812)855-9219. Comments: Erasmuse@Indiana.edu.