Distortions and Second-Best Policy


This lecture answers:

  1. What happens when we have another distortion like market power?
  2. What happens when we introduce other issues like fixed costs?
  3. How do second-best policies like intensity standards work?


Slides are below. The HTML slides will open in your browser and you might need to install the Lato font for it to look like it does in class. If you use the HTML slides you can navigate with the left and right arrows. Pressing ‘o’ lets you see all the slides.

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