Monday, May 29, 2006

 

Wondering

Does the existence of an externality, legitimize governmental intervention? Additionally, how do we measure externalities? What is an appropriate amount of externalized costs and benefits, deeming a tax or subsidy?

Where do the actual policy economists stand on this issue? Does anyone actually know?

Is there a particular time or a particular good/service that you think is inappropriate to subsidize, even if there were significant positive externalities?

It would be interesting to see what some people say.

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