STUDIES IN APPLIED MICROECONOMICS By JAMES F. DEWEY A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY

1998 ii ACKNOWLEDGEMENTS I owe much to my teachers. Sunne Brandemeyer piqued my interest in economics when I took Principles of Microeconomics as a sophomore. Phil Porter inspired my interest in public policy and public choice. Jon Hamilton and Steve Slutsky taught me the fundamentals of microeconomic theory and were always available as members of my committee. I was lucky to have Wayne Francis as the outside member of my committee. I am especially grateful to the cochairmen of my committee, Larry Kenny and David Sappington, for their wise counsel and friendly support. late Ed Zabel for knowledge imparted in classes and numerous other useful discussions.