Question
Those are focus questions from Joseph Stiglitz -Economics of the Public Sector, chapter 7, please answer those based on the book 1. In what ways
Those are focus questions from Joseph Stiglitz -Economics of the Public Sector, chapter 7, please answer those based on the book
1. In what ways does collective decision-making, such as determining the level of public goods, differ from standard decision-making within a household? What is the problem of eliciting preferences? When individuals differ in what they want, say, about the level of expenditures on public good, how are those differences resolved? What is meant by the problem of aggregating preferences?
2. Why may there not be a well-defined outcome when majority voting is used to resolve differences in views? Is there any voting procedure that yields a well-defined outcome in all situations? When there is a well-defined outcome, is it necessarily efficient?
3. What are alternative ways for determining the level of public goods expenditures? Are there ways that ensure an efficient level of expenditures on public goods?
4. What are some of the ways in which politics affects the outcomes of public decision-making about resource allocation?
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