Assignment: Economics Issues of the Underground Economy

I have uploaded several articles dealing with the related topics of big city rent control, condo conversion moratoria, and arson fires. They are in a labeled folder within the Files tab on Carmen/Canvas. As you read the articles, you should be able to figure out how these topics are related and what they have to do with the underground economy.

Once you have developed a sufficient understanding of the background, I would like you to write a 2-3 page description of the public policy issues involved. Please use the structure presented at the end of the last lecture - the one that I am recommending you use to guide your group presentations. Here is a summary of the structure introduced in class:

What? Describe the basic issue to be discussed; if the underground activity arose because of a governmental restriction, mention that here;

When? Present a brief background and some history - describe the evolution of the problem and the emergence of the UG business;

Who? Introduce the suppliers (firms or organizations providing the good or service) and the customers (purchasers of the good of service); mention any other stakeholders involved - government, non-profits, churches, the education establishment, etc;

How? Discuss the mechanics of operation of this UG activity, as well as the ways in which payments are made;

Where? Is this an activity that operates locally, nationally, globally? Are there features that restrict it to certain places?

Why? Offer a judgment about why this is an important issue to be understood, worked on, and hopefully solved; if possible, make recommendations about approaches to ameliorating or eliminating the issue.

For this first assignment, you have two choices for format: Word document Carmen/Canvas upload (.doc format) or typewritten paper document. Subsequent homework submissions are likely to be upload only, to allow use of the TurnItIn integrity checking system.