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Question 1 (l' he Robeok Model] The clean air act in the U.S. forced rms in counties with high leyels of particulate pollution to install
Question 1 (l' he Robeok Model] The clean air act in the U.S. forced rms in counties with high leyels of particulate pollution to install scrubbers on their plants, increasing these time\" costs. This policy also resulted in cleaner air in these treated "non-attainment\" counties while the air quality did not change in other counties. You can assume that the treated counties are few in number and represent a small share of population and employment in the country. 1.1] What can you predict happened to housing prices and wages in the treated counties after the Clean Air Act was implemented? Make your argument using the Roback Model and with a graphical explanation. 1.2] It has been found that housing prices went up in these treated counties. What does that say about how the benets of this policy to consumers relates to the cost to producers? 1.3] in the world of the Roback Model, did this provision of the Clean Air Act ultimately have any effect on consumer welfare (utility)? It so, for whom? Explain
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