Prof.
Bryan Caplan
bcaplan@gmu.edu
http://www.bcaplan.com
Econ
854
HW
#1 (please
type; answers should be 1 page, double-spaced)
Answer any SIX
questions!
1. Argue that a policy you
consider heinous is Kaldor-Hicks efficient.
Be careful not to confuse transfers with deadweight costs.
2. What is your maximum defensible estimate of the
probability of voter decisiveness in American presidential elections? Use the formula from the notes to organize
your answer.
3. It frequently happens that
two senators who represent the same
state disagree. Is there any way for the
Median Voter Theorem to explain this?
4. Why was there platform
divergence in the last U.S. presidential election? In particular, what quantitative importance
would you assign to the various theoretical explanations, and why?
5. How would restricting the
franchise to college graduates affect
6. If the entire
7. The Tiebout model shows
that local governments are
efficient. Offer a counter-example, and
explain how it is possible.
8. "Due to the 'race to
the bottom,' it is more efficient for the federal government, rather than the
states, to control welfare policy."
Explain why you agree or disagree.
9. Give an example that illustrates
how the Miracle of Aggregation works for a continuous policy decision (as
opposed to a two-candidate election).
10. Name one political issue
where you think random errors largely "cancel each other out." If a referendum were held on this issue, how
would the vote shares and outcome differ from a world with perfect information?
11. Propose and try to sell an
efficiency-enhancing political bargain on a controversial issue.
12. Which is more predictively
accurate in the modern