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Economic Analysis of Social Issues 1st Edition by Alan Grant
Edition 1ISBN: 978-0134098371Economic Analysis of Social Issues 1st Edition by Alan Grant
Edition 1ISBN: 978-0134098371 Exercise 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?
Explanation
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Negative externality:
Negative external...
Economic Analysis of Social Issues 1st Edition by Alan Grant
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