Consider the concept of Pareto efficiency in the context of policy decisions in the real world. We change policy or make new policy to try and make society better off than they were before the policy change. Consider the use of an Urban Growth Boundary (UGB; common in Oregon) that restricts new development to certain areas close to city centers. You can review the concept of UGBs here (Links to an external site.).

Consider the concept of Pareto efficiency in the context of policy decisions in the real world. We change policy or make new policy to try and make society better off than they were before the policy change. Consider the use of an Urban Growth Boundary (UGB; common in Oregon) that restricts new development to certain areas close to city centers. You can review the concept of UGBs here (Links to an external site.). https://en.wikipedia.org/wiki/Urban_growth_boundary

Assume there are two groups of people impacted:

A) those that own property inside the UGB

B) those that own property outside the UGB.

Please answer the following questions in a new discussion post by Wednesday night.

What is one (1) reason people in group A might gain from a UGB policy? (2 pts)
What is one (1) reason people in group B might gain from a UGB policy? (2 pts)
Are there potential reasons that people in either group could be made worse off from a UGB policy? Explain. (3 pts)
In your opinion, is a UGB a Pareto improvement, a potential Pareto improvement, or neither? Explain your answer. (3 pts)

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