Conduct a normative analysis. What is the public policy rationale for this proposal?What market failure is it seeking to address, if any? What are the equity/efficienty tradeoffs, if any? Any other rationales given for the policy? 3. Conduct a positive analysis. What do you expect to happen as a result of the policy? Who wins and who loses? Do you think the policy will achieve its intended objective? Oftentimes the effect of a policy will depend on key elasticities. Identify which elasticities are important and how they would affect anticipated outcomes. 4. What is your personal opinionof the proposal? How did you arrive there?
