Marginal Analysis


It's the Margin that Counts

Marginalism, the effect of incremental, or small, changes, shows how economic reasoning allows us to accomplish more by accepting limits on what can be accomplished, rather than making heroic attempts to solve problems completely. In this podcast, Dwight Lee gives two examples to illistrate this point. (8:12 minutes)

Freeman Article

The Efficient Amount of Pollution
Economic Analysis Is Crucial to Understanding and Reducing Environmental Problems

When environmentalists argue that the costs of protecting the environment should be ignored, they quickly find themselves in a box. The only way to protect environmental quality in some ways (say, reducing water pollution) is by harming it in other ways (say, increasing air pollution).