ABSTRACT
“Civil servants, judges, general officers, and representative voting bodies” can create externalities when “they make decisions not directly controlled by all the people who are affected.” Externalities may be positive or negative. For example, a positive externality could occur when a local government buries electrical power lines along a city street to enhance public safety, health, and welfare. Negative externalities may result in citizen dissatisfaction and unrest. The chapter presents the case study which explores city ordinances passed to correct public health and nuisance problems created by irresponsible pet owners. The ultimate aim was to protect the health and general welfare of the people and animals living within city limits. The first ordinance proposed setting limits on the number of animals that could be kept on land located within city borders. The second ordinance was also designed to protect the public health, safety, and welfare of individuals and animals living within city limits.
