An Introduction to Externalities

Рет қаралды 382,316

9 жыл бұрын

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.
Microeconomics Course: bit.ly/20VablY
Next video: bit.ly/1QyHl5g
Help us caption & translate this video!
amara.org/v/GRz8/

Пікірлер: 65

@heldervicentec5178 4 жыл бұрын

Who is watching this during Covid 19? so real like today situation

@ThePeterDislikeShow 3 жыл бұрын

I wonder instead of forcing people to stay home maybe we can use a pigovian tax so that only the most important outings are taken?

@jtswanner 9 жыл бұрын

You guys are seriously awesome. I've watched every video up to this one so far, and I have to say that it's insanely informative. Great job on all this!

@MarginalRevolutionUniversity 9 жыл бұрын

Joseph Swanner Thank you! We appreciate any feedback you have - you can email us directly at support at mruniversity dot com or leave notes at feedback.mruniversity.com. We are trying a bunch of different stuff out so we love to hear feedback and what people like or don't like.

@akshay412sam 7 жыл бұрын

This channel is brilliant! The videos explain economic concepts so lucidly and it is just so comfortable to watch. You are helping a lot of students and that is a great service to the society. The negative externalities are going down by your positive effort!!

@MarginalRevolutionUniversity 7 жыл бұрын

Thank you Akshay! -Roman

@SmahkForexAcademyTanzania 6 жыл бұрын

PLEASE GUYS SUBSCRIBE TO "SMAHK ACADEMY" CHANNEL Our Aim is to Provide Free Range Education to Anyone Around The World, In All Academic Aspects as SCIENCE & ENGINEERING,COMPUTING,ARTS & HUMANITIES,ECONOMICS & FINANCE; Through Multi Language System And Harmonized Learning Process..... SUBSCRIBE TO JOIN OUR COMMUNITY. kzfaq.info/get/bejne/m9R8fKhyuNOncas.html

@ChrisSace 8 жыл бұрын

That was clear and concise... have been trying to understand this concept for a week now. Thank you!

@TheFedericohiguain2 5 жыл бұрын

Wow I spend 30 minutes trying to understand my textbook about externalities and I couldn’t get it but your explanation was just amazing, now I understand everything, you got a new subscriber I’m looking forwards to more of your videos. Thanks!

@worldcitizen2249 6 жыл бұрын

A fun drinking game: drink a shot every time he says "antibiotic(s)".

@jessicatoussaint4983 8 жыл бұрын

you guys are awesome!!!! thank you and pray that God will bless y'all :)

@poetsonsurg7543 4 жыл бұрын

These videos are really well explained. I've watched heaps in preparation for a new job and enjoyed them all. Thanks so much for this content.

@SingDownUnder 7 жыл бұрын

I also love your channel and use it regularly for my classes here in Auckland New Zealand. However this vid (intro to Exteralities) is confusing. Our textbook obeys a convention that negative externalities of consumption reduce social benefits (MB shifts left to MSB), rather than shifting the MC curve left to MSC consistent with your wording of "external cost" AS far as I can see the convention is useful and otherwise universal. Am I missing something. Owen Sharpe

@drmksharma 3 жыл бұрын

Really relevant now also in case of Covid-19 mutating again and again and becoming more dangerous, its has become more resistant...Awesome explanation, surprisingly 5 years back...

@giftyarthur5881 6 жыл бұрын

This channel does an awesome job of explaining economic concepts. Thank you so much for making learning easy and very insightful.

@shalommichael7013 4 жыл бұрын

can you give an example of external cost

@newworkleatherdetroit5610 8 жыл бұрын

Pigouvian tax formula at 10:40. Thanks I'm subscribing. Great analogy.

@SmahkForexAcademyTanzania 6 жыл бұрын

@GloriaAtimYoutubeCoach 3 жыл бұрын

Am in class right now and this video made my research easy

@Upgraded4552 5 жыл бұрын

Is Private Cost made up of costs incurred producers and/or consumers or just costs incurred by producers? There seems to be no consensus in literature over this matter.

@Simran-xn7ec 7 жыл бұрын

I promise that once I start earning, I would definitely contribute money for this channel :)

@SmahkForexAcademyTanzania 6 жыл бұрын

@TheTyrellWellick 3 жыл бұрын

The ideal solution IMO is using money from the Pigouvian tax for compensating external costs. An example would be a CO2 tax that is used for planting trees.

@davidvg946 5 жыл бұрын

You may include portuguese subtitles too. Thank you, amazing work ;)

@MaRta-py7mb 8 жыл бұрын

In the case of farmers giving antibiotics to live stock it is negative externality of production - that I understand. But when people overuse antibiotics, why don't we treat it as negative externality of consumption with the private benefit higher than the social benefit?

@gandalfsmom 3 жыл бұрын

"antabuyotics"

@leahpugh7297 6 жыл бұрын

This was a great explanation. Thank you for the information!

@Lex-zq3mb 3 жыл бұрын

I think I understand, but how does one put a number on the social cost?

@audreychoi8797 4 жыл бұрын

clear explanation! thank you very much :)

@KanekiKen-pk7wr 7 жыл бұрын

This video is absolutely Awesome!!!!!!!!!

@ngng8885 6 жыл бұрын

I really need to comment!!!!!! It is so useful!!!

@dannycollins9643 4 жыл бұрын

good shit

@guilhermeadan2329 6 жыл бұрын

exceptional explanation !

@beaciara6179 8 жыл бұрын

You guys are the best! Thank you!

@shashankgupta3982 9 жыл бұрын

Thanks for this great video a lot !!!! The subtitles in video is blocking some part of the graph. So please adjust the subtitle such that we can see and understand the graph more clearly.

@carlosswanton 3 жыл бұрын

You are talking about a negative production externality when the example should be about a negative consumption externality. A negative production externality will be corporations imposing a cost on society, while a negative consumption externality is about individuals overconsuming a good ( like your example ).

@hangbui5518 6 жыл бұрын

this channel is very useful. thank u very much

@Kniatty 3 жыл бұрын

Obrigado por compartilhar conhecimento conosco.

@mahsaomrauni 7 жыл бұрын

awesome ...keep going. thanks a million

@MarginalRevolutionUniversity 7 жыл бұрын

Thank you! Best, Roman

@SmahkForexAcademyTanzania 6 жыл бұрын

@ThePeterDislikeShow 4 жыл бұрын

The Chinese guy who ate a sick bat last winter probably created the biggest externality in history.

@fehmidaghazal3290 6 жыл бұрын

Very nice video

@robindragirl 7 жыл бұрын

THAAAAANK YOU SOOO MUCH

@GustavoRivasMendez 7 жыл бұрын

Isn't there another way to reduce antibiotics use? The way I see it, increasing their price is hurting poor people, because people who are not poor will always be able to afford the medicine. Rich people don't want to be sick, and they have the money, and there are no substitutes, so their demand curve is pretty inelastic. Poor people however, have an elastic curve, not because of substitutes but because they simply cannot afford it. I can't think of a solution, but it still seems unfair to me.

@1001spencer 7 жыл бұрын

The only ethical way would be to price vaccines based on the consumers income, but the same can be said for any good or service if you're taking equity into account. Hope that makes sense

@joeryan728 7 жыл бұрын

Its completely fair. It's a good. Poor people have the same opportunity to buy them, they just can't afford it. Same as a huge house, or nice car. The opportunity is the same, the market is fair.

@sinistril 6 жыл бұрын

When government intervenes, the market is no longer fair.

@dahliafully 6 жыл бұрын

because these economic theories are fascist... and i do not use that word lightly. they are privatizing the profit and socializing the cost. the lure of efficiency is biting itself in the foot.

@erickschusterdeoliveira2662 5 жыл бұрын

@@1001spencer sorry for necro'ing but to my eye it seems that instead of taxing the suppliers directly, the tax should just be applied to everyone. That way, the rich foot the bill (because they can) and poor people pay less - the money collected by the state should then be redirected towards research on the field, and a maximum yearly supply of antibiotics should be instated (obviously being able to be broken if needs be, but with state authorization). That way there are less antibiotics on the market, the use of them is compensated by government-funded research, and poor people can still afford them.

@andrea-vb8ls 6 жыл бұрын

very helpful 🤩

@guilhermeadan2329 6 жыл бұрын

I would skip the baceria example to make the video more direct...

@michelsalazar2140 6 жыл бұрын

MetraMan09 Thanks for the info. I didnt know that.

@user-in6qc4gx8g 5 ай бұрын

6:08 / 12:14

@sinistril 6 жыл бұрын

Thanks for the video... but the subject matter is just an iteration of the nirvana fallacy.

@suprxme663 Жыл бұрын

😀

@changlexu1039 4 жыл бұрын

Anyone suffering from the Essay of ECON10331?

@charlesretanal6041 2 жыл бұрын

wako kasabot haha

@latex1661 3 жыл бұрын

antibiotics overused vs prisoners overload. 1787 British hired sea captain to ship convicted felons...,Government would pay the captain only for prisoners who arrived alive.