macrodynamic approaches

macrodynamic approaches

The Fernwood Wastewater District—at the gentle insistence of both state and federal agencies—is changing methods of financing the operating and mainte- nance costs of its system. Presently, all users of the system (residential, com- mercial, agricultural, and industrial, etc.) pay for the system by a property tax; payments to the district are assigned according to individual holdings of prop- erty value. If a car wash constitutes 0.0001 of total property in the district, the car wash pays 0.0001 of the operating and maintenance costs of the sys- tem. The proposed effluent-charge system would assign cost on the basis of estimated toxic-waste quality and quantity introduced into the system. The structure could easily be applied because a federal agency has data on the amount and type of waste that production and consumption processes gener- ate annually, based on national data. These data would then be used to an annual effluent charge to each user, based on the total costs of the district. How do the two systems differ in terms of incentive to reduce wastewater quantity and toxicity? (500 words)
Your state plans to adopt a tuition tax credit for college students. How would you estimate the revenue impact of this provision? How would the decision to use static, microdynamic, or macrodynamic approaches influence your estimate? (500 words)

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Author Since: November 30, 2020