Negative Externalities and the Coase Theorem, Explained
346.6 هزار بار بازدید -
13 سال پیش
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What are negative and positive
What are negative and positive externalities? How does it relate to the Coase Theorem? Learn more: http://bit.ly/1HVAtKP
In economic activity, there are sometimes 'externalities' or spillover effects to other people not involved in the original exchange. Positive externalities result in beneficial outcomes for others, but negative externalities impose costs on others.
Prof. Sean Mulholland addresses a classic example of a negative externality, pollution, and describes three possible solutions for the problem: taxation, government regulation, and property rights. The first two options are difficult to monitor and may create perverse incentives.
A better solution to overcome the externality is property rights, as described by Ronald Coase. As long as property rights are well-defined, divisible, and defendable, parties can negotiate to reduce the impact of the pollution.
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In economic activity, there are sometimes 'externalities' or spillover effects to other people not involved in the original exchange. Positive externalities result in beneficial outcomes for others, but negative externalities impose costs on others.
Prof. Sean Mulholland addresses a classic example of a negative externality, pollution, and describes three possible solutions for the problem: taxation, government regulation, and property rights. The first two options are difficult to monitor and may create perverse incentives.
A better solution to overcome the externality is property rights, as described by Ronald Coase. As long as property rights are well-defined, divisible, and defendable, parties can negotiate to reduce the impact of the pollution.
SUBSCRIBE:
http://bit.ly/1HVAtKP
FOLLOW US:
- Website: https://www.learnliberty.org/
- Facebook: Facebook: LearnLiberty
- Twitter: Twitter: LearnLiberty
- Google +: http://bit.ly/1hi66Zz
LEARN MORE:
Watch more videos like this: http://lrnlbty.co/y5tTcY
LEARN LIBERTY
Your resource for exploring the ideas of a free society. We tackle big questions about what makes a society free or prosperous and how we can improve the world we live in. Watch more at http://bit.ly/1UleLbP
13 سال پیش
در تاریخ 1390/04/10 منتشر شده
است.
346,644
بـار بازدید شده