Book Needed: Hyman, D. N. (2014). Public finance: A contemporary application of theory to policy (11th ed.). Stamford, CT: Cengage Learning.
Chapter 3, “Externalities and Government Policy” (pp. 90–130
From the Annual Budget of the local jurisdiction of Memphis, TN, respond to the following in a 2 page paper:
Identify 2–3 externalities, as defined by Hyman (2014), that are generated by the policies and actions adopted by this jurisdiction through the Annual Budget.
For each externality, assess if they are negative or positive.
How is the jurisdiction attempting to mitigate negative effects or capitalize on positive effects? Explain.
Sample Solution
