Assignment -
1. Find an article explaining a new or proposed policy. This article can be from any source you like, and on any topic. Points for creativity. The essential point is that the article discusses a policy that can be outlined with the theoretical tools we've learned in the class. It should be short, and should not be one of the topics we've already discussed.
2. Show how theory applies in this case. Explain (succinctly!) how the theory fits with the policy environment: so who is making the decision, what constraints are they under, etc. Discuss (succinctly!) what we're simplifying away, what we're assuming, and your opinion is of those assumptions.
3. Make a recommendation. Model the policy using the framework outlined above. Explain what trade-offs come out of the model, and what evidence you would like before making a recommendation.
What are the official sections of the course? At my course we cover:
- Supply and demand
- Consumer Choice
- Choice under uncertainty
- Cost minimization
- Market Power
- Asymmetric information