Property rights and the process of bargaining

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1. Property rights and the process of bargaining can shift economies to efficient output levels, regardless of who is assigned the property rights. Use an example to discuss this statement. Your discussion should show how efficient outcome is reached with property rights assigned to either group.

2. Use the Lindahl Equilibrium model and discuss how this approach can be used to provide public goods.

“Rich nations are spending $250 billion annually subsidizing their agricultural sectors to the detriment of poor farmers as they artificially lower prices for some crops and block market access for growers from poor countries”.

Deliberate clearly how each of the policies used to support the agricultural sector in the developed countries have been detrimental to the livelihood of farmers in the developing countries.

Explain how “dumping” of subsidised agricultural products hurts poor security in poor countries.

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