An Introduction to Externalities
What are externalities and what are the different kinds of costs? And what does this have to do with the rise of “superbugs"? This video is an introduction to
What are externalities and what are the different kinds of costs? And what does this have to do with the rise of “superbugs"? This video is an introduction to externalities, including the concepts of private cost, external cost, and social cost. Using the example of antibiotics and viruses, we take a look at how costs are passed along to different members of society beyond the producer and consumer. We’ll use a chart to illustrate how to calculate the effects of a Pigouvian tax, and we provide definitions for the other key terms that will be used throughout this video series.
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In relation to imposing a Pigouvian tax, how is the external/social cost actually calculated in order to determine the amount of the tax? Thanks.
Is a Pigouvian tax on antibiotics actually practiced anywhere in the world? Or is it just a theoretical construct?
From what I have seen in India, the government will actually go the extent of subsidizing such drugs. They are used empirically and for life threatening infections doesn't it become ''necessary'' to use them as much as possible?