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Pigouvian Taxes in Economics
Рет қаралды 94,903
Күн бұрынThis video discusses the concept of a Pigouvian Tax in economics. Pigouvian taxes are a corrective tax that are used to address market failures brought about by a negative externality (e.g., smoking). By setting a per-unit tax equal to the marginal external cost (the cost to people other than the smoker), one can achieve the socially efficient outcome (the optimal amount of smoking, considering the costs and benefits of all people in society). This video uses a graph to show a Pigouvian tax yields the socially efficient quantity of a good or service. The video also discusses the double dividend of Pigouvian taxes: in addition to bringing about the socially optimal outcome, Pigouvian taxes also yield tax revenue that can be used for other projects.
This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.
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@nope34 9 ай бұрын
very cool!!! Thank you so much for your explanation. Sitting in class for 1h30min I just could not make sense anything, watching you explained just cost me 11:02 minutes! thank you!
@damianrodriguez2972 6 жыл бұрын
Pigouvian taxes correct the presence of a deadweight loss. When the Social costs are higher than the associated parties' private costs, it's a market failure that causes deadweight loss. For example, there's an oil refinery in between my house and SLC. It smells terrible and makes the commute unpleasant; that is a negative externality of oil production, and someone who doesn't consume oil will bear that social cost without any benefit. That's the market inefficiency that taxation corrects.
@shreeh1882 2 жыл бұрын
Thanks!
@ryanwillis2513 5 жыл бұрын
I’m studying criminal economics and I finally understand so much
@moribundmurdoch 3 жыл бұрын
Criminal economics sounds like a great class for a chaotic evil DnD character to take.
@Anonymos185 4 жыл бұрын
Top 10 videos libertarians don't want you to see
@moribundmurdoch 3 жыл бұрын
Libertarians always be bringing up tort law though?
@pymokagraterra9605 3 жыл бұрын
@@Zer0Sen yes
@uhhhohhh5926 5 жыл бұрын
Chef John is that you???
@sando619 5 жыл бұрын
Dude omg youre so right LOL
@Edspira 5 жыл бұрын
HA, I'm a fan of Food Wishes too!
@4Jamo 3 жыл бұрын
That was sooooo helpful, hopefully I ace my econ. exam in 3 days :|
@Edspira 3 жыл бұрын
Good luck!
@4Jamo 3 жыл бұрын
@@Edspira Thanks:)
@alexmustata4089 3 жыл бұрын
Thank you, very nicely explained
@Edspira 3 жыл бұрын
Glad it was helpful!
@taconydorgeson7053 7 ай бұрын
good explanation from you, thanks
@thomasscheicher9779 4 жыл бұрын
Super erklärt! Thanks for uploading your video
@SznycluPL 4 жыл бұрын
very nice explanation, thank you
@sanchimittal9139 2 жыл бұрын
nice explanation
@aminaabouelenien9661 4 жыл бұрын
what is the difference between a Pigouvian subsidy and a subsidy given to producers equal to the quantity they produce?
@maryshenoda Жыл бұрын
thank you so much!
@umersujra477 6 жыл бұрын
What are the difference between corrective tax and pigouvian tax....?
@damianrodriguez2972 6 жыл бұрын
A Pigouvian tax is a corrective tax
@StephenJStoeckert 4 жыл бұрын
Yang Gang
@ThePeterDislikeShow 3 жыл бұрын
I think we need a pigovian tax on anything that might spread COVID. Travel (e.g., on gas or airline tickets), restaurant meals if eaten on premises, and/or offer subsidies on delivery, online school instead of going in person.
@andrewxu3602 3 жыл бұрын
Policymakers often make societally inefficient decisions, not because they're ignorant, but because it'll help them get elected by people who don't know anything about economics.
@jewelciappio 3 жыл бұрын
Authoritarian. You want a tax on something that MIGHT. That’s nazi level.
@rosalynlukasik3438 7 жыл бұрын
Does the pigouvian tax therefore create a deadweight loss?
@hebti895 7 жыл бұрын
No, it's the goal. I mean, there is a deadweight for the private actor. But the social surplus increase.
@sinistril 7 жыл бұрын
Pigouvian tax is such a huge economic fallacy.... but hey, whatever lines government coffers.
@moribundmurdoch 3 жыл бұрын
Please explain why it's an economic fallacy - we're here to learn.
@ignacioandresv3170 3 жыл бұрын
@@moribundmurdoch He probably said it because most of the time this tax is nonexistent and you're forced to live with that market failure.
@jewelciappio 3 жыл бұрын
It makes more sense in a system where there are no other taxes. No federal, no state, no property, sales, luxury, estate, etc.