Clark University Case Study

Clark University is located on 950 Main Street in Worcester, MA. Worcester is the second largest city in the state and is known as the heart of the commonwealth. On the contrary, Main south, is known to be the most dangerous area of Worcester. After World War II, similar to many of New England’s mill towns, Worcester began to worsen. By the 1980s, Main South was in bad shape. The main south was a center of crime in the city, with extensive drug activity and prostitution. Residents of the Main South were among the cities’ poorest, and unemployment was widespread. Clark University’s open campus policy had positive and negative externalities on the Main South. An externality is a benefit or cost that effects on the well-being of a bystander in
Positive externality is one that has beneficial effects. , such as the higher education that a segment of society attains which benefits the whole economy. Examples of positive consumption externalities include: Increased education of individuals and university police. Due to University Police that patrols the neighborhood for students’ safety, the neighbors who don't pay for the University Police nonetheless cannot be excluded from enjoying some of the benefits. Moreover, the benefits that they get from the University Police do not detract from the benefits students get. The marginal cost of reducing crime would include resources devoted to police, courts, and prisons. The marginal benefit to reducing crime would include the reduction in losses to crime victims, including losses due to personal injury, stolen goods, and anxiety. It would not be economically efficient to reduce the amount of crime to zero. In other words, there is an economically efficient level of crime where the marginal benefit from crime reduction equals the marginal
It will inspire more young people to go to university, which will generate a positive externality for future generations. As this can lead to broader society benefits in the form of greater economic productivity, a lower unemployment rate, greater household mobility and higher rates of political participation. For example, a well-educated society is more likely to make good decisions when electing leaders. Also, regions with a more-educated population tend to have lower crime rates. In addition, more education leads to higher worker productivity and higher living standards for society in general. An individual’s education benefits not only himself/herself, but also society generally, when it makes him/her a better citizen.
Individuals that are more educated are usually more productive workers. Educated citizens are more informed and usually more active voters. Families have access to financial assistance through education grants and loans. Having public schools that provide mandatory education gives every child the chance to learn and become to leaders of our future, a huge positive externality for society.
Volunteering can create positive externalities in a number of different ways. Many of the Clark students are heavily involved in the community. They volunteer to clean up public parks, assist in classrooms, tutor kids in boys