Structure

• Evaluation

  For evaluations, you should consider:

  • Who is affected/ externalities?
  • Short run vs long run
  • Magnitude
  • Costs
  • Equality
  • Balance (how strong is the argument on either side)
  • Elasticities
  • Assumptions
  • Sustainability
• Microeconomic Impacts on Consumers


  • Price and consumer surplus
  • Quality of goods and services
  • Health
  • Incomes
  • Living standards
• Microeconomic Impacts on Producers

  • Profits
  • Investment
  • Costs and revenue
• Microeconomic Impacts on the Government


  • Tax revenue
  • Government spending
  • Social welfare
• Determinants of PED


  NASBIT

  • Necessity or luxury
  • Addiction / habit-forming
  • Substitutes
  • Branding
  • Income
  • Time
• Determinants of PES

  TEASS

  • Time
  • (State of the) Economy
  • Availability of factors
  • Spare capacity
  • Stockpiles and perishability
• Externalities

  OQT

  • Opposing externalities
  • Quantify
  • Time l
• General Evaluation Framework

  MATES

  • Missing info
  • Applies to all people
  • Time
  • Elasticity
  • Scale