It's estimated that the average annual marginal social cost (i.e.negative externality) of householdgun ownership is in the range of $100 to $1,800.

Given what you have learned in class about how to correct and control negative externalities,what public policies would you propose to alleviate the undesirable effects of gun ownership?Some people have suggested a corrective tax be levied to owning of guns so as to incorporatethe social cost into the private cost of gun sales/purchases.In addition, borrowing the idea ofliability insurance for car drivers, some have put forth that liability insurances should also berequired for people owning guns, just like owning automobiles.

How do you feel about these ideas (tax, liability insurance)? What are the strengths of each argument?What are the weaknesses? And which one is more efficient? Which one is more equitable?How can you makethem more efficientand equitable?