Public Information Activities: Evaluation with Variable Coefficient Models

Abstract

Public agencies inform and educate consumers and producers about products and production techniques, their respective uses, and costs. Proposals to expand these activities are common. For, when heads of firms and households are imperfectly informed or cannot evaluate technical information about products or production processes, they may make economically inefficient choices and experience profit or welfare losses. The rationale for public information and certain education activities is that such losses may be reduced, perhaps by enough to exceed the costs associated with these activities.