Syllabus 673 2019€¦ · in Theory and Practice 2nd edition. New York: Oxford University Press, 2007 VII. Readings The readings for the class and links to all journal articles will

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Agricultural Economics 673

Fundamentals of Resource and Environmental Economics Fall 2019

Instructor

Richard Woodward

210M AGLS Building

979-845-5864 office

[email protected]

Office Hours and communication

• Open door policy

• e-mail messages usually receive prompt

response.

• If necessary, you may call me at home, but

please not after 9:00.

I. Course Objectives

• To develop a strong understanding of the fundamental principles of environmental

and resource economics.

• To expose you to the breadth of the field.

• To help develop the ability to read and synthesize papers in applied economics.

• To foster creative and independent thinking about problems in the area of

environmental and resource economics.

II. Class home page

The class homepage where an updated schedule of readings and assignments will be

posted is located at

http://agecon2.tamu.edu/people/faculty/woodward-richard/673/.

III. How the class will work

The class periods will be divided roughly equally between sessions during which

standard text-book material is covered, and sessions in which two or three papers will be

discussed.

On dates when a text book chapter is covered, the purpose of the class is to ensure that

the the students understand the entire reading and could, if necessary, answer prelim

questions related to that material. To ensure this, each student will submit 3-5 questions

prior to class on the assigned reading. These questions will serve to guide our discussion

and must be submitted at least 5 hours prior to the class. A format for question

submission will be provided.

On most dates when papers are discussed, students will take the lead in presenting those

papers. Non-presenting students must submit 1-2 questions on each paper presented

using Google Docs at least 24 hours before class. If two papers are being presented, the

presenters are not required to submit questions.

During the first 10 minutes of each class we will discuss a recent news item and connect

it to the economic principles and methods that we are studying. Responsibility for that

will rotate among the students and the professor, and the article must be identified the

night before the class.

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IV. Grades

The purpose of grades is to provide a signal to you, the department, the university, future

employers, and others. Here is what I believe those signals should indicate for a

graduate-level course:

A - Student demonstrates thorough understanding of the material and the ability to apply

the concepts to problems beyond the scope of the course.

B - Student demonstrates good understanding of the material but it remains unclear

whether he or she would be able to extend the concepts beyond the course.

C - Student does not demonstrate a good understanding of the material covered.

D - A lot worse than C.

F - Forgot to withdraw from the class.

Grade calculation:

10% - Class Participation. Discussion provides the primary structure for class and there

will be little in the way of lectures, so participation is critical. Three class participation

scores will be given daily.

News article 2 points: We will take turns finding a news article to read prior to each class

on a current environmental topic. If it is your turn, 2 points will be given if an article is

shared at least 24 hours prior to class. If it is not your turn, students who fully participate

in the discussion will receive 2 points. Partial credit will be given for late submissions or

weak participation.

Questions 2 points: Each day that the questions must be submitted, you will be given a

score of 0, 1 or 2: 0=failed to submit. 1 = submitted but questions were late or show little

depth. 2 = questions demonstrate that you have given the reading thought.

Participation 3 points: You will receive points for participation. For full credit you

should participate in the discussion to some extent and your participation should

demonstrate that you have prepared for class.

Seven points should be the norm and any time you are given less than 5 points you will be

informed of this. Your lowest 2 participation scores will be dropped when calculating

your final average.

25% - Presentations. During the semester you will be required to present several papers

to the rest of the class. You will have the responsibility for a 15-20 minute summary of

the papers and leading a discussion of the paper. The summaries should be concise, but

thorough. You will be penalized if the presentation is too long. The emphasis should be

on the questions: What’s the main point of the paper and how did they make that point?

What’s the contribution of this paper? and What are the limitations of this paper?

PowerPoint presentations may be used, but this is often not the best medium. To force

you to explore alternative means of lecturing, at least one of your presentations must be

done without the use of PowerPoint. Grading is based on how clearly the critical issues

in the paper are presented, not on how fancy your presentation is. Reading PowerPoint

slides or a handout will be penalized. A score sheet and tips for your presentations will be

distributed.

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5% - Discussant. When a paper is presented by a student, another student will be

responsible for being a discussant and facilitating the discussion of the paper. The

discussant should provide a brief assessment of the paper and then leading a class

discussion, based in part on questions that were submitted by other students.

30% - Final exam. The final examination will evaluate your understanding of a list of

fundamental concepts. Questions will be randomly selected from the list.

30% - Term paper. The text of your paper (not including tables, figures, & references)

must be 12-15 pages double-spaced and can be on any topic related to environmental or

resource economics that you choose. Your paper must contain both a review of the

relevant literature and extension of the literature. In the final class periods, students will

give 15-20 minute presentations of their paper. A topic for your paper will be due on

October 12, and a list of sources to be used must be submitted two weeks later. A

detailed sheet explaining the paper assignment will be passed out separately.

Writing skills: The clarity of your writing will be considered in the evaluation of your

work. Spelling and grammatical errors will be penalized. Always use a spell and

grammar checker before submitting typed work. Taking advantage of the university’s

writing center is strongly encouraged.

Plagiarism: Plagiarism is a severe offense. It occurs when a reader is led to believe that

words or ideas in a paper are yours, when in fact they were taken from someone else. If

you have any questions about whether something you write would constitute plagiarism,

ask. Term papers must be submitted electronically as well as a hard copy and will

Turnitin.com will be used to check for plagiarism.

V. Prerequisites

I will assume a Ph.D. level of preparation in economic theory of static and dynamic

optimization and fundamentals of welfare economics. The following courses suffice:

Econ 629 and 630, Agec 637, and concurrent or prior registration in Agec 636. If you do

not satisfy these course prerequisites, permission of the instructor is required.

VI. Textbooks

REQUIRED: Hanley, Nick, Jason F. Shogren, and Ben White. Environmental Economics

in Theory and Practice 2nd edition. New York: Oxford University Press, 2007

VII. Readings

The readings for the class and links to all journal articles will be available from the class

home page.

Other Books. In addition to our text, the following are some excellent books that many

environmental and resource economists have on their shelves.

Baumol, William J. and Wallace E. Oates. 1988. The Theory of Environmental Policy.

2nd ed. Cambridge: Cambridge University Press.

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Bromley Daniel W., ed. 1995. Handbook of Environmental Economics. Cambridge:

Blackwell.

Champ, P.A., K.J. Boyle, and T.C. Brown, eds. 2003. A Primer on Nonmarket Valuation.

Kluwer Academic Press: Boston.

Clark, Colin W. 1976. Mathematical Bioeconomics: The Optimal Management of

Renewable Resources. New York: Wiley.

Conrad, Jon M. and Colin W. Clark. 1987. Natural resource economics: notes and

problems. New York: Cambridge University Press.

Dasgupta, P. S. and G. M. Heal. 1979. Economic Theory and Exhaustible Resources.

New York: Cambridge University Press.

Freeman, A. Myrick III, Joseph A. Herriges, and Catherine L. Kling. The Measurement of

Environmental and Resource Values: Theory and Methods. Routledge, 2014. RFF

Press Routeledge: New York, NY.

Grafton, R. Quentin, Wiktor L. Adamowicz, Diane Dupont, Robert Hill, Harry Nelson,

and Steven Renzetti. 2004, The Economics of the Environment and Natural

Resources. Melbourne: Blackwell.

Phaneuf, Daniel J. and Till Requate. 2017, A Course in Environmental Economics New

York: Cambridge University Press.

Tietenberg, Tom. Environmental and Natural Resource Economics, some recent edition.

New York: Addison Wesley Longman. (Undergraduate textbook, good place for

to go for intuition)

Xepapadeas, Anastasios. 1997. Advanced Principles in Environmental Policy.

Cheltenham, UK: Edward Elgar.

VIII. Scholastic Dishonesty

Rules and penalties concerning matters such as dishonesty, conspiracy, and plagiarism

are identified in the Texas A&M University Rules. They will be strictly enforced. Don’t

cheat.

IX. Students with disabilities

The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that

provides comprehensive civil rights protection for persons with disabilities. Among other

things, this legislation requires that all students with disabilities be guaranteed a learning

environment that provides for reasonable accommodation of their disabilities. If you

believe you have a disability requiring an accommodation, please contact Disability

Services, currently located in the Disability Services building at the Student Services at

White Creek complex on west campus or call 979-845-1637. For additional information,

visit http://disability.tamu.edu.

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Questions that an environmental & natural resource

economist should be able to answer

Core Concepts

Questions that typically fall within the area of “Environmental Economics”

1. What are “economic institutions” and why is it critical to understand these?

2. What are externalities and why do they lead to economically inefficient outcomes?

3. What is the “Coase Theorem” and how does it relate to environmental economics?

4. What are transaction costs and when and why are they important?

5. What is a Pigouvian price?

6. When are prices-based regulations preferred to quantity-based approaches (Prices vs. Quantities)

7. What is the double-dividend and tax interaction effect debate all about?

8. What are public goods and why is there inefficient private provision of such goods?

9. What are the arguments for and against incentives as opposed to “command-and-control”?

10. How do transferable discharge permits work?

11. What is nonpoint pollution and how is it distinctive with respect to policy options?

12. What are the main complications when externalities are transboundary?

13. What is the Porter hypothesis and is it supportable?

14. What are the theoretical foundations of nonmarket valuation?

15. What is the travel cost model and how is it implemented?

16. What is the hedonic pricing and how is it implemented?

17. What are the main stated-choice valuation methods and how are they implemented?

18. What is the Environmental Kuznets curve?

Questions that typically fall within the area of “Resource economics”

19. What are common property and open access resources?

20. What is the efficient use of renewable resources such as forests & fisheries?

21. What are transferable rights programs?

22. What is a Malthusian?

23. What are the theoretical justifications for discounting?

24. What is a Hotelling price path and why is this important?

25. What is scarcity and how is it measured?

26. What is a backstop technology and what are its implications for resource management?

27. What are the main economic issues when considering waste disposal and recycling?

28. What are the most important economic issues surrounding endangered species and biodiversity?

29. What do economists have to say about sustainability?

Some Issues with which we are familiar

• Water and air pollution. • Climate change. • Renewable & nonrenewable resource management. •

• Overfishing. • Biodiversity loss. • Ecosystem management. •

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The Final Examination

Explanation and grading scale The final exam for the class will consist of questions essentially randomly drawn from this list. The exam

is closed book. You will be given four questions and need to answer three. It is a good idea to prepare

notes on these questions as we proceed through the semester. In writing your answers, you should

attempt to deliver four basic things:

1. A strong intuition behind the topic (40%)

2. Some degree of formalization or modelling. This could involve graphs or math, but might be

limited to careful logical arguments. (30%)

3. Some key references, indicating that you are connected to the main contributors to the relevant

literature. (15%)

4. Connections to the real-world significance of the issue. (15%)

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Questions Template

Please follow the following guidelines when creating questions for the class.

1. Use Microsoft Word. A question template document is available from the class home page.

2. Start each line with the letter p followed by the page # and a decimal from 1 to 9 giving the

approximate place on page where the relevant text appears. For example, p324.9 would refer to a

section of text at the bottom of page 324.

3. After the page number place a tab and then start writing your question.

4. Do not allow Word to use automatic numbering. When you start a paragraph with a number

Word has a tendency to assume that this is a numbered list and formats it as such. We do not

want this. Hopefully this will be prevented by having the “p “ before the number, but if not, look

up “autocorrect options” for your operating system and version of MS Word.

5. If, within a single question, you need to create a separate paragraph or put an equation on a

separate line, then use [shift]enter to create a line break, instead of just using the enter key. This

way when the questions are sorted, your questions will not get jumbled up.

6. At the end of each question, put your first name in parentheses.

Examples

p86.6 A question specifically related to an issue in the a little bit below the middle of page 86. A

question might take up a number of lines and there is no need to do anything to format it. That will be

taken care of when questions submitted by everyone are brought together. (Rich)

p89-92 A question related to the issues raised on pp. 89-92 (Rich)

General A general question about the chapter. (Rich)

p99.3 What do I do if my question has an equation like 2E mc= ,

so that I want to break it over several lines? (Rich)

If you click on the icon on your toolbar (or press ctrl-shift-8), it will reveal symbols indicating tabs,

carriage returns, etc. so that the above examples would look like this:

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Expectations When a Paper is Presented

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WHEN YOU ARE PRESENTING

General points

• Unless stated otherwise, your presentation should 20 minutes or less, followed by a 10-15 minute

discussion. We will stick quite rigidly to this time-line.

• I do not expect a fancy PowerPoint presentation, but if you want to use PowerPoint that’s o.k.

But for the most part, keep it simple and focused. Clarity is rewarded; style is overrated.

Overheads might be useful and using the board is frequently the best option. Handouts are

sometimes helpful but to help the audience, not to help the presenter.

• You will be given a letter grade and comments after each presentation (see attached grading

rubric)

Content

• The purpose of the presentation is to help the audience, who has also read the paper, to pull out

the main contribution(s) of the paper. You should be explicit about this.

• You are expected to make a strong effort to understand the paper. Read it thoroughly and try to

work through the analysis. It may be necessary to consult textbooks or other articles in order to

understand the paper. After you have tried on your own, if you’re still having trouble make an

appointment to discuss it with the instructor or another member of the faculty. This means that

you should start preparing at least a week in advance.

• At a minimum, you need to answer these questions:

• What is/are the contribution(s) of the paper?

• What are the strengths and weaknesses of the paper?

• Your presentation should both summarize the paper and assess the paper. Is it a seminal work?

If so why? If not, why not? Do the methods or arguments really make their point?

• It is often helpful to do a citation search on the paper using Google Scholar. This will tell you if

the paper is viewed as seminal in the academic literature.

• Be aware of the questions and comments that were submitted by your fellow students, but do not

simply walk through those questions one by one. Instead, these can help you see what is

important and/or confusing in the paper.

• There’s a delicate balance to be drawn with respect to math. On the one hand, part of the value

of a presentation can be to clarify what the math is really saying. On the other hand, don’t spend

a lot of time going over algebra. Overall, help us understand the economics behind the math, not

the math itself.

A sample outline

• The purpose of the paper I am presenting is …

• The key literature that the paper builds on or has contributed to is …

• The authors (main) model is as follows: Graphical or mathematical presentation is fine. Be sure

to clearly define all your variables. Provide a handout if there’s a lot of notation.

• A clever or interesting thing that they do in their paper is …

• The main conclusions of the paper are …

• It seems to me that this paper is (A) an important contribution, (B) a nice application of standard

approaches, (C) flawed because …, (D) …, or (E) …

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Expectations When a Paper is Presented

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Presentation pointers

• A good presentation is informative and engaging. If you read your notes -- that will count

against you. If you enliven your discussion with examples to clarify, that will help you.

• Any handout or PowerPoint slide should help the listener; they should not be a crutch for the

presenter. Handouts longer than one page are rarely appropriate. Do not read a handout or your

slides.

• It is better to have the audience focus on you at the board or in front of the screen, than to have

them look at the article. So for the most part, present important equations.

• If you use PowerPoint, I recommend the following.

• minimum font – 25 pt

• maximum # of words per slide, 75

• usually plan on at least 1-2 minutes per slide

• Usually, use bullets and very short incomplete sentences. Occasionally it will be helpful to

reproduce a quote from the paper, but it is best to highlight the most important phrases

WHEN YOU ARE THE DISCUSSANT

• The discussant will be responsible for keeping the presenter on time (which will usually be 15

minutes, but might be longer in some cases).

• The discussant should provide a very brief (less than 3 minutes) reaction to the presentation. Was

it clear? What was still unclear. Did the presenter raise issues that were particularly insightful.

• The discussant will then be responsible for leading the class discussion of the paper. Questions

submitted by other students can be a starting places for this discussion, but you do not have to

cover of all them. You are not responsible for answering questions, but for facilitating a helpful

conversation.

EVERYONE ELSE

• You are expected to read the paper carefully.

• You are expected to submit at least two questions via a google docs. These questions can serve

two purposes. First, they can help the presenting student identify the interesting and/or

challenging parts of the paper. Alternatively, they can help motivate the discussion portion of the

class.

• After the paper is presented, there should be time for discussion. Ask good questions and/or make

good points. For example, good comments might start, “I didn’t understand how the authors …”

or “Something that I found particularly strong/weak in this paper was how they …”

• You should be attentive and supportive, and give good feedback. Giving good presentations takes

practice. We all need to help each other learn how to do it better.

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__Powerpoint __ Handout Start Time: _____

End Time: ______

AGEC 673 Presentation Score Sheet

Name: ________________________________________________________

Date: _________________________________________________________

Reading: ________________________________________________________

Organization

Completeness and correctness

Clarity and fluidity of presentation

Overall, did the presentation give me a clear sense of the contribution(s) of the paper?

Letter Grade: _________

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Paper assignment Agec 673 - 2019

Topic: Your paper may consist of either (option 1) an original contribution of a theoretical or empirical

nature in the general area of environmental or natural resource economics or (option 2) a literature review

of a subject in the field. There are a wide range of potential topics, and I am happy to work with you to

develop an interesting topic, just make an appointment.

Literature review: Regardless of which option you choose, your paper must include a literature review

section that is sufficiently thorough to motivate your analysis. Your literature review should be topic-

based , not paper-based. That is, it should be organized around themes rather than, for example, simply

consisting of five paragraphs about five papers. Having a separate literature review section is one way to

organize your paper, but not the only way. One alternative would be to draw on the appropriate literature

first in your motivation and then again as you build and study a theoretical model.

Although you may obtain guidance from other literature reviews, your literature review should include

original interpretation and demonstrate an independent attempt to evaluate the literature. It is expected

that you will have read all papers cited in your literature review and, on request, you must be prepared to

provide evidence of this by providing me with hard copies of papers cited and/or notes taken on each.

Motivation For either option, your paper should include an applied motivation, i.e. some indication that the problem

you are considering is of relevance in the real world and not simply a theoretical exercise. However, there

is a difference between motivation, and a literature review.

If you choose option 1, your paper must include some independent analysis of a problem. This may

involve institutional analysis, theoretical analysis using an analytical model, or econometric analysis. The

analysis should build on the existing literature, but must be an extension.

If you choose option 2, then your literature review must be much more complete and the contribution of

the paper will be in your ability to pull together the separate threads in the area to either establish “what

we have learned,” or provide an organizing taxonomy of the literature. It should also identify the issues

that still remain unanswered by the literature.

Formatting: The paper should be 12-15 pages of double-spaced text not including references, figures and

tables. Text should be double spaced, 12 pt font with 1 inch margins on all sides. Please number pages. I

prefer for figures and tables to be included in the body of the text, but if you prefer you can put them at

the end. If you incorporate them in the text you’ll need to adjust for that when calculating your page

length. Referencing should be consistently follow the Chicago Manual of Style or some other standard.

Review and Discussion: Each student is required to provide a verbal review of one of your classmate’s

presentation drafts. The critique should help the rest of the class assess the quality of the paper and give

some feedback to the author. The discussant will have 5-10 minutes for his or her comments following the

paper’s presentation. The discussant should focus on issues such as the contribution of the paper, where

the arguments fall short or are incomplete, or where there is room for improvement or expansion. In

addition, you should give written comments, usually in the form of handwritten comments on a hard copy

to the author.

Plagiarism and academic honesty: Plagiarism occurs when a reader is led to believe that words or

ideas in a paper are yours, when in fact they were taken from someone else. If you are deriving a result,

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the reader should know if it is your derivation, or was taken from someone else. The source may be a

particular source (requiring a citation) or could be a standard result in the literature, in which case that

should be noted. Like analytical results, a literature review is also a piece of analysis. Hence, if you draw

on a literature review of others, that must be cited. For this paper, I expect that you will carry out an

independent literature review. You may draw on other reviews, but there must be evidence that you have

added your own perspective and synthesis of the papers that have been written.

All papers must be submitted both in hard copy and electronically and will be reviewed using an online

plagiarism checking service (Turnitin.com). There are severe consequences for plagiarism. If you have

any questions about what qualifies as plagiarism, check with me.

Use of paper in other classes: It is not uncommon for students to build on a paper in one class for use in

another class. I have no objections to this, but I do believe that each paper turned in must address the

specific issues covered that class. Repeatedly turning in essentially the same paper does not contribute to

the educational experience. Hence, I require that all professors involved by aware of joint usage. If you

are building on a paper from another class for your paper in 673, or use your 673 in another class in the

future, you must send me an e-mail message with a copy to the other professor informing both of us that

the paper will be used twice and elaborating on how the paper will be modified for each submission. After

you finish AGEC 673, I should be informed if the paper is used for another class or you submit the paper

for publication.

Due dates:

October 2: A one paragraph proposal of your topic. Your proposal will need to be approved. Several

iterations may be necessary until I am confident that you have a project that is sufficient and not

over-reaching.

You must attach to your final draft a copy of your proposal and outline with my signature

indicating that it has been approved. Any significant deviations from the proposal or outline must

be approved.

November 4: Literature search. You must turn in an electronic copy of raw data from a literature search

(just copy and paste into a Word document and don’t worry about formatting). Include search

terms and a list of identified references. At least 10 and not more than 100 references should be

turned in. At a minimum, you should use Google Scholar and complete at least one search on a

topic term and one on a specific reference. Ask for help if you need help with how to carry our an

effective literature search.

November 18: Paper outline due. This should be 1-2 pages and should show the major sections of your

paper and key points that you will make.

November 27: Draft paper must be submitted. This will be reviewed by one of your classmates.

Last class periods of semester: Papers to be presented in class. Everyone is also responsible for discussing

one paper. A one-page written review of peer’s paper is due to author and professor at the

presentation.

Dec. 12: Final drafts of the papers are due. If you turn in your paper after this date you will receive an

incomplete in the class.

January: Deadlines for proposals for papers to be presented at the AAEA and AERE meetings next

summer.

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Journals that frequently contain articles in

Resource and Environmental Economics (Journal dominated by papers in environmental & resource economics are in bold type.)

Agricultural Economics Journal of the Association of

Environmental and Resource

Economics

American Economic Journal-Applied

Economics Journal of Environmental Economics

and Management

American Economic Journal-Economic Policy Journal of Forest Economics

American Economic Review Journal of Law & Economics

American Journal Of Agricultural Economics Journal of Political Economy

Annual Review of Resource Economics Journal of Public Economics

B E Journal of Economic Analysis & Policy Journal of Risk and Uncertainty

Climatic Change Land Economics

Ecological Economics Marine Resource Economics

Energy Economics Natural Resource Modeling

Energy Journal Oxford Economic Papers-New Series

Environment and Development Economics Quarterly Journal of Economics

Environmental & Resource Economics Resource and Energy Economics

Forest Science Review of Economics and Statistics

Journal of Agricultural and Resource

Economics Review of Environmental Economics

and Policy

Journal of Agricultural Economics Scandinavian Journal of Economics

Journal of Economic Behavior & Organization Water Resources Research

Journal of Economic Dynamics & Control World Development

Associations: The Association of Environmental and Resource Economics (AERE) is the leading

association worldwide, though it is U.S. focused. Other associations are The European AERE, The East

Asian AERE, and the Latin American AERE.

E-mail listserv: RESECON: The primary mailing list for environmental and resource issues.

https://www.aere.org/resecon. Subscription is strongly encouraged. It is particularly useful for job market

and conference announcements, though occasionally there is a good discussion on the list.

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Hanley, Shogren & White (2nd edition): Typos and comments.

(Some of these were suggested by students and have not been

verified by Woodward. Read critically)

46 last sentence of the first paragraph in parenthesis “marginal cost” is repeated.

51

( ) ( ) ( ) s.t.

,

A H A H

A A A H H H A H

A H

l a l

H

l

A H H

l a l l

A

laH

l

A

l

H

l

l l l

L p A l l p H l a l l l l

p A p H A

p H

p A p H A p H

p HH

p A

p H

p A

λ

λλ

Π + Π + =

= − + − + − +

+ =

=

+ =

+ =

=

This is different from what is presented in the book

( ) ( )( )( ) ( )

( )

first they present the FOC without using chain rule in second term

(and there's an error in the parentheses

, , ,'

They then divide by and ' , which should yi

H H A H

A A H HA H

H A

H l A l A l H l ap A l p p

l l

p A l

∂ ∂ + =∂ ∂

( )( )( )( )

( )

( )

eld

, , ,

' '

but they neglect the division in the second term

H H A H

A A H

H A A

H l A l A l H l ap l l

p A l A l

∂ ∂∂ ∂+ =

66 last paragraph second to last sentence net marginal costs of increasing pollution to point “A”

should be “B”.

67 Figures 3.11 and 3.12 are not consistent. Given the areas in 3.11, xa would be the global

maximum. However, the text describing the figures is correct.

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84 in the second paragraph about in the middle says, the tax exceeds the marginal control

costs are equal, “are equal” should be deleted.

88 the inequality t=MCh > MB should be reversed “<”.

146 equation 5.19. the first + sign should be a −.

192 The first equation on the page is not the reaction function, it is the condition required for

an interior solution.

193 AH

* should be below the point NE in figure 6.3

199 Figure title: non-binding

202 The RHS of equation 6.9 is missing

205 on the fourth line from the top omits the letter “A”. i.e. curve at point__,

220 should be ( ) rt

q qH p c e gλ− += −

222.7 Equation for FOC should should be

240.6 Text says: “As the tax reduces the price to producers then this implies that the output

where the marginal cost equals the average cost must be lower than it would be in the

absence of the tax.” This isn’t right, it probably was supposed to be “where the marginal

cost equals marginal revenue.”

255.2 Eqn 8.10 should be : 0rt

x x tH c e λ−− + =ɺ

261.9 The first term should be ( ),t t tq dπ .

This is a constrained Hamiltonian, often referred to as a Lagrangian.

274.4 The equation 1/3 of the way down the page should start with −r, not r. With this

correction 9.11 is correct

277.8 the sentence after 9.18 should read “The discrete-time function G(xt,qt) is given in stock

levels, xt+1= G(xt,qt).”

382.1 numerator of 12.10 should be U(w-L), not U’

280 It would be helpful to label the curves in the graphs on Figure 9.6

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281 At top “For different discount rates…” Does this make sense? R = ∞ is the presumed

concept here, so do the authors mean for different x’s or p’s?

285 Just under section 9.6.2 The second sentence is really a question, correct? Text then

needs a question mark (?) after Table 9.2…

289 No definitions are given in section 9.7.2 and should be. Define s as the cost of the quota,

more generally, lay out the notation and discussion with concepts related to tradeable

permits. It is the price per what? Each fish caught? Or a bundle, or a ton/weight? Does it

matter?

290 there is a misspelled word in the second line from the top. i.e. box 9.3 gives and example

of “row”… should be “how”.

293 Box 9.4 is a “revision” of what? Do you mean “review” of eigenvalues…? This, and

Figure 9.8 are so thinly explained they should just be dropped, or considerably expanded

so the reader can figure out what is going on. For example, what are “convergent

separatrices”?

297 Berck, 1980 is not in the reference section

380 error in spelling in the second to last paragraph of Box 12.2 …framing effects-how one

present a risk… “present” should be “presents” or different sentence structure.

382.1 numerator of 12.10 should be U(w-L), not U’

385 --- at optimal rule for development, it appears the inequality signs are backward there

393 Equation (12.10), should be .

397 in box 12.4 second paragraph from the bottom about mid paragraph “leaned” should be

spelled “learned”.

401 equation 12.26)

[ ]( ; ) ( ( ) ){ ( ) 1 (1 ( ; )) ( ) 0p z p U w L x z x L x p z p U w z x′ ′ ′− − − − + + − − − =

[ ]( ; ) ( ( ) ){ ( ) 1} (1 ( ; )) ( ) 0p z p U w L x z x L x p z p U w z x′ ′ ′− − − − + − − − − =

406 Notations in this protection premium set-up are inconsistent with former ones. In this

model, w and L denotes gains in each state, while w and L are wealth and loss in former

models.

16

4

406, equation 12.37)

[ ]2( ) ( ) ( ( ) ( ) ( )( ) ( ) 1/ 2z p z O zp z V p z Vp z oπ π σ σ − = + ′ ′′+ +

( ) [ ]2( ) (( ) ( ) 1) ( ) ( ) ( )/ 2z p z O zp z V p z p z o Vπ π σ σ − = + ′ ′′+ +

414 Second paragraph It might be that should be .

415 Last paragraph,. should be

17

Name:_______________________________ Grade: _________

Agec 673

Term Paper evaluation form

(Type I – Original Contribution)

INTERMEDIARY COMPONENTS (full credit given only if submitted on time)

Due Date Description Points

10/2 One paragraph proposal /5

11/4 Literature search /5

11/18 Paper outline /5

11/27 Draft for peer review /5

PAPER EVALUATION

Quality of message _______ (25 points max) (Thoroughness, Technical competency, Originality. How well does the paper accomplish proposed.goals?)

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Mechanics _______ (10 points max) (Spelling, Grammar, etc.)

Presentation _______ (10 points max)

Review of classmates paper _______ (5 points max) (Does the review provide thoughts and comments on the paper that are useful for the author and/or audience?)

18

Name:_______________________________ Grade: _________

Agec 673

Term Paper evaluation form

(Type II –Literature Review)

INTERMEDIARY COMPONENTS (full credit given only if submitted on time)

Due Date Description Points

10/2 One paragraph proposal /5

11/4 Literature search /5

11/18 Paper outline /5

11/27 Draft for peer review /5

PAPER EVALUATION

Organization and synthesis of the literature _______ (30 points max) (Does the review provide new insights and understanding of the literature through its organization and

interpretation?)

Literature Review _______ (10 points max) (Thoroughness of literature)

Writing skills _______ (15 points max) (Organization, Fluidity, Clarity)

Mechanics _______ (10 points max) (Spelling, Grammar, etc.)

Presentation _______ (10 points max)

Review of classmates paper _______ (5 points max) (Does the review provide thoughts and comments on the paper that are useful for the author and/or audience?)

19

Final Checklist (to be included with hard copy submission of your paper)

(This page should be completed and stapled to the end of your paper)

Option chosen: Original Contribution ____

Literature review ______

Approved proposal is attached

Paper length. (total) _____

Approximate text length (not including references,

figures and tables) _____

Paper is formatted as indicated in the guidelines _____

Pages are numbered _____

Explanation of relationship to paper(s) for other

courses (if any)

Date paper was presented _________

Date review draft was sent to class _________

Date final draft is being submitted _________

I have read the guidelines on plagiarism and

confirm that the ideas presented in this paper are

mine unless correctly attributed to others. Signature:

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