Public Economics Assignment - Questions, Solutions and Analysis

This document presents a comprehensive solution to a public economics assignment, addressing a range of topics within the field. The assignment includes questions on non-rivalrous and excludable goods, the effects of labor income tax on labor supply, and the impact of policy changes like alcohol bans on aggregate welfare. It delves into the optimal quantity of public goods in different jurisdictional scenarios and examines the impact of externalities, including the determination of equilibrium quantity and price, and the calculation of optimal taxes. Additionally, the assignment explores the Tiebout hypothesis, the Meltzer and Richard model, the Benabou and Ok model, and the findings of Alesina and Fuchs-Schuendeln (2007), and Alesina and La Ferrara (2005). It also covers the application of Arrow's Impossibility Theorem and the Median Voter Theorem, alongside the findings of Aidt and Jensen (2009) and provides analysis of voting behavior and preferences for redistribution, making it a valuable resource for students studying public economics.