Economic Analysis of Social Issues 1st Edition by Alan Grant

تمرين 25

[Related to Application 7.1 on page 143] Read Application 7.1 carefully. Suppose that sex offenders move around often, rarely staying in the same place for more than a year or two. Under those circumstances, why might a person be interested in purchasing a house next door to a sex offender? Over a longer time horizon, does the sex offender confer a negative or positive externality on the homebuyer?