This note provides a modern story for principles instructors to use as a supplement to textbook accounts of problems associated with externalities and the applicability of the Coase theorem. Our story begins in July of 1988, when Larry Ellison paid $3.9 million for a home in the Pacific Heights...

This brief note develops a pedagogically useful new (albeit still rudimentary) way of teaching the free-rider concept. This simple approach applies the familiar tools of indifference curve analysis to the topic at hand. Since so many students of economics are well versed in indifference curves,...

This study of the impacts of economic freedom, regulatory quality, and the relative burden of taxation on the level of per capita real income/GDP among OECD nations over the 2003-2007 period adopts a modified version of the overall economic freedom index computed by The Heritage Foundation...

This exploratory study investigates the hypothesis that higher levels of economic freedom in an “economic region” promote a higher level of economic activity and hence yield higher levels of per capita real income in that economic region, ceteris paribus. However, in the pursuit of a broader...

In this Reply, we concede that our assumption that per capita expenditures will grow by the maximum permitted under Proposition 4 is arbitrary. How "unrealistic" this assumption is (would be) cannot be known. Nevertheless, we viewed the assumption under debate as necessary to the undertaking of...

The purpose of this pedagogical study is to provide a straightforward and easily understood framework that can be used to teach the economic behavior underlying income tax evasion. We begin with presenting a brief background that reflects the research that had been done, especially for the case...

What would the true government expenditure and tax burden im­pacts of California's Proposition 4 likely be if it (or its equivalent) were enacted in all 50 states? What happened to actual state plus local government expenditures per capita over the period 1970-1976 is examined. Next, we examine...