The Ohio State University

Economics 4597.01, Issues of the Underground

I have uploaded several articles dealing with the related topics of big city rent control, condo conversion moratoria, and arson fires. They are in a labeled folder within the Files tab on Carmen/Canvas. As you read the articles, you should be able to figure out how these topics are related and what they have to do with the underground economy.

Once you have developed a sufficient understanding of the background, I would like you to write a 2-3 page description of the public policy issues involved. Please use the structure presented at the end of the last lecture ? the one that I am recommending you use to guide your group presentations. Here is a summary of the structure introduced in class:

What?????????????? Describe the basic issue to be discussed; if the underground activity arose ???????????? ??????????????????????? because of a governmental restriction, mention that here;

When????????????? Present a brief background and some history ? describe the evolution of ??????????????? ??????????????????????? the problem and the emergence of the UG business;

Who??????????????? Introduce the suppliers (firms or organizations providing the good or ???????????????????? ??????????????????????? service) and the customers (purchasers of the good of service); mention ???????????????????????????? ??????????? any other stakeholders involved ? government, non-profits, churches, ??????????????????????????????????????????? the education establishment, etc;

How?????????????? Discuss the mechanics of operation of this UG activity, as well as the ??????????????????? ??????????????????????? ways in which payments are made;

Where???????????? Is this an activity that operates locally, nationally, globally? Are there ?????????????????? ??????????????????????? features that restrict it to certain places?

Why??????????????? Offer a judgment about why this is an important issue to be understood, ??????????????? ??????????????????????? worked on, and hopefully solved; if possible, make recommendations ??????????????????????????????? ??????????? about approaches to ameliorating or eliminating the issue.

This homework is due by noon on Friday, September 9th. For this first assignment, you have two choices for format: Word document Carmen/Canvas upload (.doc format) or typewritten paper document. Subsequent homework submissions are likely to be upload only, to allow use of the TurnItIn integrity checking system. Good luck!