Semester page for ECON4910 - Spring 2015

Teachers

If you are missing any of my suggested solutions to seminar problems, you can pick them up in my office, ES1041.

Eivind

May 19, 2015 10:41 AM

Here is the link to an exemplary answer of the exam in 2012 with comments from me. It's on pp. 32.

http://foreninger.uio.no/observator/arkiv/observator_2013-1.pdf

Good luck with the real exam!

Florian

May 10, 2015 10:06 PM

I posted my suggested solution to seminar 6.

Unfortunately, I said something wrong in class, regarding problem 2 (c): I said that the tax will not affect the level of y. This is of course not correct. However, an increase in the tax will not change y as much as an increase in the subsidy will, for the same distortion to x. Alternatively: to reach the same level of y as with a subsidy, the tax will induce a larger distortion to the level of x.

If the benefit from learning by doing is high enough relative to the damages from pollution, we want a big increase in y, without decreasing x too much. The subsidy is best for that purpose. The RPS is best for some intermediate range of benefits from learning by doing.

Eivind

May 8, 2015 5:31 PM