Description
Part I – (this draws on welfare analysis regulation (Ch 4) to improve the argument made in the Rough Draft as well as describe an unintended consequence)
Consider rent control policies in the rental housing market and the negative aspects of this government intervention. In addition to improving your paper based on the feedback you received, add to your previous discussion of the US rental housing market using what you have learned about DWL and welfare analysis; specifically discuss efficiency concerns as a result of the intervention. You may have already discussed DWL in the rough draft, but you should elaborate on that discussion and really focus on what causes the DWL and in what ways is the loss generated, exactly who is impacted and how; give specific examples. Make sure you use multiple different economic terms from key concepts in chapter 4 throughout this part of the paper.
Part II – (this requires you to offer a creative alternate solution to the consequence you described above)
Now put yourself in the role of a social advocate. Noting the problems you presented above, what solutions do you have to help protect society? Offer an alternative solution that addresses the issues you noted in the rough draft and avoids the problems you noted above. Be creative, you are not limited to possible government interventions but should also consider potential interventions from other groups in society.
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