Public Finance Assignment - 831 Words

Problem 1 (Public goods/Voting) Recommended source: Rosen, Public Finance. Citizens/voters in a hamlet inhabited by only three citizens consider the provision of street light. The marginal benefit curve of each citizen is downward sloping in the amount of street light provided. The cost of providing street light consists of erecting lamp posts and the electricity for illumination. For part a)-c) of this question, assume the following: All lamps are switched on during the hours of darkness such that the cost of providing street light is linear in the number of lamp posts erected and street light provision is financed by a local poll tax which divides the cost of providing the light equally among the citizens. a) In a graph, determine†¦show more content†¦b) Suppose that, in order to single out some alternative as the winner nonetheless, a decision is taken in a two step majority voting procedure: In the first round one alternative is put against another alternative and in the second round the first round winner is put for a vote against the remaining alternative. The winner of the second round vote is declared overall winner. ba) For all possible combinations of second round votes over pairs of alternatives, write down the winning alternative. bb) Write down all possible combinations of pairs of alternatives in the first round of voting. For each pair do the following: For the first alternative, write down the overall winning alternative if the first alternative would make it to the second round of voting. Do the same for the second alternative of the pair. How should voters in the first round of voting decide between the alternatives they face? cc) If voter 3 is the chair (or agenda setter) and can decide which alternatives to put for a vote in the first round of voting: Which pair should she pick? Problem 3 (Majority voting v. Borda vote count) (Recommended source: Schotter, Microeconomics, chapter 18). The board of Moot Oil has to decide which of four alternative oil field developments, A, B, C or D should be realized. The board consists of three voting members. The oil fieldsShow MoreRelatedPublic Sector Finance Assignment - Study Mode3793 Words   |  16 PagesASSIGNMENT TITTLE: ASSIGNMENT – PUBLIC SECTOR FINANCE SUBJECT: PUBLIC SECTOR FINANCE COURSE: MASTERS IN DEVELOPMENT FINANCE UNIVERSITY OF STELLENBOSCH: GRADUATE SCHOOL OF BUSINESS LECTURER: Prof Gavin Woods DUE DATE: 7 MAY 2009 DECLARATION I herewith declare this work to be my own, that I have acknowledged all sources I have consulted in this assignment itself and not only in the bibliography, that all wording unaccompanied by a reference is my own, and that no partRead MoreThe Budget System of Kyrgyzstan1961 Words   |  8 PagesI. Introduction In this paper I am going to explain budget system of Kyrgyzstan. The government budget is one of the main instruments for implementing public policy. Any budget system focused on achieving the following global objectives: economic efficiency, social justice, political stability, rule of law and strengthening the unity of the state. 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