Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 9

[Related to Application 7.2 on page 147] According to the Centers for Disease Control and Prevention, the most common sexually transmitted infection is the genital human papilloma virus (HPV). It's so common that nearly all sexually active men and women get it at some point in their lives. In 2006, the Food and Drug.Administration approved the first HPV vaccine. What is the direct effect of the HPV vaccine? Does the HPV vaccine create an externality? If so, explain what that externality is and discuss whether it is positive or negative.