The influence of income, across countries, on the proficiency of leisure, as measure by international football achievement is addressed. It is widely concluded that leisure is a normal good, however; little research has been conducted on the influences of efforts to become proficient at a specific leisure activity. While the law of diminishing marginal productivity indicates that leisure proficiency will increase at a decreasing rate with increases in time allocated toward the leisure activity, the second-order effect of income on neither leisure nor leisure proficiency can theoretically be determined. To estimate these effects, an empirical examination of FIFA's World Rankings has been conducted. The results indicate that leisure proficiency on an aggregate level is positively associated with income and increases at a decreasing rate. This subsequently provides evidence that the consumption of leisure on an aggregate level also increases at a decreasing rate with increases in income.
It is necessary to know whether the damaging business is liable or not for damage caused since without the establishment of this initial delimitation of rights there can be no market transactions to transfer and recombine them. But the ultimate result (which maximises the value of production) is independent of the legal position if the pricing system is assumed to work without cost.R. H. CoaseThe Paper River is a cl a s s room simu l ation designed to examine a negat ive ex t e rnality ge n e rated by a pro d u c t ive process that elicits a Coasian solution. Prev i o u s ex p e riments designed by Hazlett (1995), N u gent (1993, 1 9 9 7 ) , and Berg s t rom and Miller (1997, focus on how pollution emission rights can be effi c i e n t ly a l l o c ated by the market through pro p e rty rights. Although these ex p e riments touch on pro p e rty rights in demonstrating how emission rights are a more efficient means of reducing pollution than gove rnment imposed limits, t h ey do not add ress Coase's Th e o rem dire c t ly. Classroom ex p e riments that demonstrate Coase's Th e o re m i n clude those by Delemeester and Neral (1995, 115-19) and Stodder (1996). In these activ i t i e s , students imagine they are either the cre ator or recipient of a hy p othetical ex t e rn a l i t y. Although this ap p ro a ch is useful for conveying Coase's Th e ore m , it does not give students the opportunity to ge n e rate and ex p e rience the ex t e rnality dire c t ly. In the Paper Rive r, students cre ate and ex p e rience an ex t e rnality fi rs t hand and then concep t u a l i ze a correction pro c e d u re that is consistent with Coase's Th e o rem. The unique nat u re of this simu l ation allows students to be invo l ve d d i re c t ly in the ex t e rn a l i t y. In add i t i o n , it simu l ates an actual env i ronmental pro bl e m , wh i ch will enable students to identify more easily other examples of ex t e rnalities that affect our society, s u ch as endange red species, d e s t ruction of the ra i nfo re s t s , and pre s e rvation of nat u ral hab i t at s .
OVERVIEWThis activity simulates two firms located along a river in which one firm pollutes the water used by another firm downstream. The river water is represented Spring 1999
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