Содержание
- 2. 10 Externalities
- 3. Recall: Adam Smith’s “invisible hand” of the marketplace leads self-interested buyers and sellers in a market
- 4. EXTERNALITIES AND MARKET INEFFICIENCY An externality refers to the uncompensated impact of one person’s actions on
- 5. EXTERNALITIES AND MARKET INEFFICIENCY An externality arises... . . . when a person engages in an
- 6. EXTERNALITIES AND MARKET INEFFICIENCY When the impact on the bystander is adverse, the externality is called
- 7. EXTERNALITIES AND MARKET INEFFICIENCY Negative Externalities Automobile exhaust Cigarette smoking Barking dogs (loud pets) Loud stereos
- 8. EXTERNALITIES AND MARKET INEFFICIENCY Positive Externalities Immunizations Restored historic buildings Research into new technologies
- 9. Figure 1 The Market for Aluminum Copyright © 2004 South-Western Quantity of Aluminum 0 Price of
- 10. EXTERNALITIES AND MARKET INEFFICIENCY Negative externalities lead markets to produce a larger quantity than is socially
- 11. Welfare Economics: A Recap The Market for Aluminum The quantity produced and consumed in the market
- 12. Welfare Economics: A Recap The Market for Aluminum For each unit of aluminum produced, the social
- 13. Figure 2 Pollution and the Social Optimum Copyright © 2004 South-Western Quantity of Aluminum 0 Price
- 14. Negative Externalities The intersection of the demand curve and the social-cost curve determines the optimal output
- 15. Negative Externalities Internalizing an externality involves altering incentives so that people take account of the external
- 16. Negative Externalities Achieving the Socially Optimal Output The government can internalize an externality by imposing a
- 17. Positive Externalities When an externality benefits the bystanders, a positive externality exists. The social value of
- 18. Positive Externalities A technology spillover is a type of positive externality that exists when a firm’s
- 19. Figure 3 Education and the Social Optimum Copyright © 2004 South-Western Quantity of Education 0 Price
- 20. Positive Externalities The intersection of the supply curve and the social-value curve determines the optimal output
- 21. Positive Externalities Internalizing Externalities: Subsidies Used as the primary method for attempting to internalize positive externalities.
- 22. PRIVATE SOLUTIONS TO EXTERNALITIES Government action is not always needed to solve the problem of externalities.
- 23. PRIVATE SOLUTIONS TO EXTERNALITIES Moral codes and social sanctions Charitable organizations Integrating different types of businesses
- 24. The Coase Theorem The Coase Theorem is a proposition that if private parties can bargain without
- 25. Why Private Solutions Do Not Always Work Sometimes the private solution approach fails because transaction costs
- 26. PUBLIC POLICY TOWARD EXTERNALITIES When externalities are significant and private solutions are not found, government may
- 27. PUBLIC POLICY TOWARD EXTERNALITIES Command-and-Control Policies Usually take the form of regulations: Forbid certain behaviors. Require
- 28. PUBLIC POLICY TOWARD EXTERNALITIES Market-Based Policies Government uses taxes and subsidies to align private incentives with
- 29. PUBLIC POLICY TOWARD EXTERNALITIES Examples of Regulation versus Pigovian Tax If the EPA decides it wants
- 30. PUBLIC POLICY TOWARD EXTERNALITIES Market-Based Policies Tradable pollution permits allow the voluntary transfer of the right
- 31. Figure 4 The Equivalence of Pigovian Taxes and Pollution Permits Copyright © 2004 South-Western Quantity of
- 32. Figure 4 The Equivalence of Pigovian Taxes and Pollution Permits Copyright © 2004 South-Western Quantity of
- 33. Summary When a transaction between a buyer and a seller directly affects a third party, the
- 34. Summary Those affected by externalities can sometimes solve the problem privately. The Coase theorem states that
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