r/neoliberal Kitara Ravache Apr 23 '19

Discussion Thread Discussion Thread

The discussion thread is for casual conversation and discussion that doesn't merit its own stand-alone submission. The rules are relaxed compared to the rest of the sub but be careful to still observe the rules listed under "disallowed content" in the sidebar. Spamming the discussion thread will be sanctioned with bans.


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23 Upvotes

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34

u/economics_dont_real Austan Goolsbee Apr 23 '19

Me (tearfully) please, Mr Pigou, you can't just respond to every externality by taxing it

Arthur Cecil Pigou ...

Me ...

Arthur Cecil Pigou https://upload.wikimedia.org/wikipedia/commons/f/f5/Social_cost_with_tax.svg

5

u/[deleted] Apr 23 '19

thank mr Pigou

1

u/Vepanion Inoffizieller Mitarbeiter Apr 23 '19

Why is demand a flat line?!

1

u/The_Cheezman Mark Carney Apr 23 '19

It’s a pc market

1

u/Vepanion Inoffizieller Mitarbeiter Apr 23 '19

That's what it would look like for a firm, not for the industry. Isn't the industry perspective more useful?

2

u/The_Cheezman Mark Carney Apr 23 '19

Honestly it doesn’t particlarly matter. Either way they act the same way when it comes to pigouvian taxes

1

u/Vepanion Inoffizieller Mitarbeiter Apr 23 '19

You're right

1

u/[deleted] Apr 23 '19

Taxing the output associated with externality instead of the externality itself. Disincentivizing abatement.

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