AES 806
Applied Welfare Economics
Review of measures of household welfare, willingness to pay, and notions of Pareto optimality, aggregate welfare and market failure. Practical methods of comparative static analysis of the effect of public policies on consumer and firm behaviour, and on market equilibrium. Theory of externalities and welfare implications of market versus non-market allocation of public goods with emphasis on Livestock. Applications include evaluation of such policies as taxes, price supports, quotas, pollution controls, environmental damage liability, and intellectual property rights.