Thursday, July 09, 2009

Obvious Externalities

It is constantly frustrating that people who think all you need to know can be learned in ECON 101 seem to have started skipping class after about the 3rd week. Anyone writing about the problems of home foreclosures should understand that there aren't just private costs involved, that abandoned homes - I live right next to one! I guarantee it lowered the price of my house! - have negative impacts on neighborhood quality and home values.