Category Archives: Microeconomic Theory

Some Carbon Tax Scenarios

Posted on July 7, 2020 by Adam Bailey

How does a competitive industry respond to an emissions tax in the short run and the long run?  What if the industry is a monopoly? In this post I bring together two standard pieces of microeconomic analysis: the effect of … Continue reading →

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Mitigable Public Bads

Posted on October 30, 2019 by Adam Bailey

The economic theory of public goods is sometimes assumed to be adaptable in a straightforward manner to public bads.  Here I consider some implications of the fact that such bads are usually mitigable. Consider a region around an airport, subjected … Continue reading →

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In Defence of the Linear Demand Function

Posted on June 21, 2016 by Adam Bailey

Presentations of microeconomic analysis often assume linear demand functions, but rarely justify them in terms of utility theory. However it can be done, and without making outrageous assumptions. Originally posted 11/2/2016.  Re-posted following site reorganisation 21/6/2016. Run a Google search … Continue reading →

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