Problem Set #3, Econ 11

Due Monday, April 14.

Prof. Foldvary

10 pts.

3a. For those who attended the Civil Society lecture by Randal O'Toole on "San Jose's Urban-Growth and Light-Rail Transit" on April 10:

1. How cost-effective is urban rail transit in Santa Clara County relative to busses and cars?

2. What has been the effect of San Jose's urban-growth boundary on the price of real estate?

3. What would be the most efficient transit systems for the San Francisco Bay Area, including passenger miles per dollar and also accounting for the social cost of congestion?

4. What would be the most efficient policy regarding growth and development?

5. Did the speaker provide logic and evidence for his case, or are there flaws in his logic and a

lack of evidence or other aspects that you think he overlooked?

3b. For those who did not attend the Civil Society lecture:

Go to the web site:

http://www.americandreamcoalition.org/

and answer these questions:

1. What are the benefits of the "American Dream" according to the web site?

2. Describe the concept of "smart growth".

3. What are the social costs of "smart growth" according to the web site?

Go to the web site:

http://www.rppi.org/ps245.html#Heading1

and answer these questions:

4. What has been the trend in the subsidy for mass transit (growing, or shrinking?), and what has been the overall effect of this trend?

5. If you were a government official in charge of transit policy and had $100 million to spend to reduce congestion, how would you spend it? Explain why.