Pigouvian tax Dictionary, Encyclopedia and Thesaurus - The Free Dictionary13,820,712,102visits served TheFreeDictionary Google ? Keyboard Word / Article Starts with Ends with Text EnglishEspañolDeutschFrançaisItalianoالعربية中文简体PolskiPortuguêsNederlandsNorskΕλληνικήР...
答:Pigouvian Taxes and Pigouvian Subsidy: A tax designed to equal the marginal external cost of production of a commodity. It is added to the price, which measures only marginal private costs. The price plus tax now measures marginal social cost, thus internalizing the orgianl external cost. ...
This straightforward insight has broad implications for how we design any targeted tax or subsidy. It explains why a carbon tax would work reasonably well, but some other environmental taxes would not. It explains why most food taxes are doomed to fail. It explains why most sin taxes are ...
a) Extra credit: Suppose the government imposed a sales tax that was zero on the first 15 units and $1 for every unit of X greater than 15. What would Curry’s Budget Constraint look like? How much would be collected in Taxes? If we wanted to mimic this with a...
A subsidy may be optimal for some externally harmful activities. When administrative cost is a function of only activity levels, it may not be optimal to tax every activity. If it is optimal to tax each activity, the policymaker should set the tax equal to the externality plus the marginal ...
constructedwithinBuchananandStubblebine(1962)andinterpretedandmodifiedbyTurvey(1963),wherebyinaCoaseanenvironment—whereagentshavetheabilitytocostlesslybargain—thepresenceofaPigouviantaxprovidesadditionalincentivestoreduceharm,whichleadstoanallocativelyinefficientequilibrium.Inparticular,BuchananandStubblebine(1962,p....
We also find that the participants expect the tax to be more effective in reducing demand for the good with a negative externality than both the subsidy alone and the combinations of tax and subsidy. This belief does not, however, translate into support for the tax. 展开 ...