scholarly journals Guns, Latrines, and Land Reform: Dynamic Pigouvian Taxation

2016 ◽  
Vol 106 (5) ◽  
pp. 83-88 ◽  
Author(s):  
Michael Kremer ◽  
Jack Willis

Dynamically and statically optimal Pigouvian subsidies and taxes on durables will differ in a growing economy. In a dynamic game, consumers may delay purchasing durables with positive externalities, such as latrines, anticipating greater future subsidies. Governments can most cheaply induce optimal purchasing by commiting to make subsidies temporary. Foreign donors may make commitment impossible, generating delays in private investment that more than fully offset the social benefits of transfers. Anticipated future taxes or regulation of durables with negative externalities, such as guns, may encourage current purchase, potentially causing policymakers who would otherwise prefer taxes or regulation to abandon such policies.

2021 ◽  
pp. 1-22
Author(s):  
Kian Mintz-Woo ◽  
Justin Leroux

Abstract Climate ethics have been concerned with polluter pays, beneficiary pays and ability to pay principles, all of which consider climate change as a single negative externality. This paper considers it as a constellation of externalities, positive and negative, with different associated demands of justice. This is important because explicitly considering positive externalities has not to our knowledge been done in the climate ethics literature. Specifically, it is argued that those who enjoy passive gains from climate change owe gains not to the net losers, but to the emitters, just as the emitters owe compensation to the net losers for the negative externality. This is defended by appeal to theoretical virtues and to the social benefits of generating positive externalities, even when those positive externalities are coupled with far greater negative externalities. We call this the Polluter Pays, Then Receives (‘PPTR', or ‘Peter') Principle.


2018 ◽  
Vol 48 (2) ◽  
pp. 113-120 ◽  
Author(s):  
Barbara Gołębiewska ◽  
Tomasz Pajewski

This study investigates the problems of convergence between objectives of agricultural producers and consumers. It states that nowadays, increasingly often, the farmers’ products have no market price (are not marketed) but are either demanded by the society (positive externalities) or the society is interested in discontinuing their production (negativeexternalities). This study also outlines the key problems that arise from costs and benefits associated with agricultural externalities. The social costs that may be generated by modernagriculture, and the solutions used to restrict the same, were covered by this analysis. The literature on the subject and the Polish FADN databases were used. It was found thatfarms of environmentally friendly producers failed to collect enough payments to compensate for running a green business.


Mathematics ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 38
Author(s):  
Artem Sedakov

Time consistency is a property of the solution to a cooperative dynamic game which guarantees that this solution remains stable with respect to its revision by players over time. The fulfillment of this property is directly related to the characteristic function and its behavior with the course of the game as any solution is based on this function. In this paper, we will examine the characteristic functions for two economic models with network externalities represented by a two-stage network game using the theory developed for this class of games. For a network game with positive externalities represented by a public goods provision model, we demonstrate a sufficient condition for time consistency. For a network game with negative externalities represented by a market competition model, we show that the cooperative solution is always time consistent.


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Stephan Brenner ◽  
Caterina Favaretti ◽  
Julia Lohmann ◽  
Jobiba Chinkhumba ◽  
Adamson S. Muula ◽  
...  

Abstract Background Countries in Africa progressively implement performance-based financing schemes to improve the quality of care provided by maternal, newborn and child health services. Beyond its direct effects on service provision, evidence suggests that performance-based financing can also generate positive externalities on service utilization, such as increased use of those services that reached higher quality standards after effective scheme implementation. Little, however, is known about externalities generated within non-incentivized health services, such as positive or negative effects on the quality of services within the continuum of maternal care. Methods We explored whether a performance-based financing scheme in Malawi designed to improve the quality of childbirth service provision resulted positive or negative externalities on the quality of non-targeted antenatal care provision. This non-randomized controlled pre-post-test study followed the phased enrolment of facilities into a performance-based financing scheme across four districts over a two-year period. Effects of the scheme were assessed by various composite scores measuring facilities’ readiness to provide quality antenatal care, as well as the quality of screening, prevention, and education processes offered during observed antenatal care consultations. Results Our study did not identify any statistically significant effects on the quality of ANC provision attributable to the implemented performance-based financing scheme. Our findings therefore suggest not only the absence of positive externalities, but also the absence of any negative externalities generated within antenatal care service provision as a result of the scheme implementation in Malawi. Conclusions Prior research has shown that the Malawian performance-based financing scheme was sufficiently effective to improve the quality of incentivized childbirth service provision. Our findings further indicate that scheme implementation did not affect the quality of non-incentivized but clinically related antenatal care services. While no positive externalities could be identified, we also did not observe any negative externalities attributable to the scheme’s implementation. While performance-based incentives might be successful in improving targeted health care processes, they have limited potential in producing externalities – neither positive nor negative – on the provision quality of related non-incentivized services.


2015 ◽  
Vol 10 (2) ◽  
Author(s):  
Jonathan P. Caulkins

AbstractInternational prohibitions create asymmetries; production and transshipment concentrate in relatively few places that bear the bulk of the negative externalities created by the illegal trade. These externalities fuel calls for altering the United Nations treaty framework and for individual nations to legalize outside of the framework. Analyses of the pros and cons of legalization usually adopt the perspective of a single nation acting in isolation. However, one nation’s legalization alters incentives for others to act, and not always in obvious ways. So the proper perspective is that of a dynamic game.The primary contribution of this paper is to make the case for analyzing legalization as a strategic game, but it also offers preliminary analysis for the case of cocaine. Tentative conclusions include:


2021 ◽  
pp. 0734242X2110612
Author(s):  
Alice Libânia S Dias ◽  
Lisete Celina Lange ◽  
Aline Souza Magalhães

This article presents an approach to compensate waste pickers in the informal sector of Minas Gerais state, Brazil, via a Payment for Urban Environmental Services (PUES) instrument, called ‘Recycling Exchange’. The aim is to evaluate the effects of this instrument on the amount of waste diverted from landfill and reintroduced into the production chain, and to increase recognition of waste pickers’ contributions to the state’s economy. It was found that the ‘Recycling Exchange’ met the fundamental objectives of a PUES: the double social and economic benefits of the social inclusion of waste pickers in the execution of the public policy for solid waste management, and inducing (in the case of glass), ensuring and stabilising (plastic and paper) continuity of the activity of selling recyclables in times of wide price fluctuations for these recyclables. The instrument enhanced the provision of this environmental service and the positive externalities associated with recycling.


2021 ◽  
Vol 2021 (2) ◽  
pp. 86-94
Author(s):  
Dmytro V. Kozlov

The problems of research of internalities and externalities with the further development of the general classification of externalities of economic activity of the enterprise are defined. The influence of negative and positive externalities on society and enterprise is considered. The concept of negative externalities differs from transaction costs. It is noted that transaction costs can be reflected in cash and can be offset by market inclusion in the price of the products, but this is not possible for externalities. It is emphasized that the purpose of economic activity of any enterprise is to exceed the positive externalities over the negative and achieve the maximum difference between them. The different time duration of the impact of the enterprise on third parties is given. The sign of externalities on the scale of action is emphasized. The externalities of the enterprise are considered in their essence according to the principles of sustainable development, highlighting economic, social and environmental externalities. It is emphasized that economic externalities can arise in the course of the whole business cycle of full-fledged work of all parts of the enterprise. In contrast to economic, social externalities affect people both within the enterprise, that is workers and citizens of the society in which the enterprise operates. And when it comes to environmental externalities, the mediator between the source and recipient of externalities is the environment. Externalities are distinguished according to the means of accounting and the degree of influence on the subject of perception. The necessity of regulation of externalities through internalization and actions of the enterprise with the help of state and market instruments is substantiated. It is emphasized that internalization is the transformation of negative externalities into positive ones in terms of convergence of marginal costs and benefits of the enterprise to marginal social costs and utility.


2019 ◽  
Vol 14 (2) ◽  
pp. 174-190 ◽  
Author(s):  
April Rose Panganiban ◽  
Gerald Matthews ◽  
Michael D. Long

Human–Machine teaming is a very near term standard for many occupational settings and still requires considerations for the design of autonomous teammates (ATs). Transparency of system processes is important for human–machine interaction and reliance but standards for its implementation are still being explored. Embedding social cues is a potential design approach, which may capture the social benefits of a team environment, yet vary with task setting. The current study examined the manipulation of transparency of benevolent intent from an AT within a piloting task requiring suppression of enemy defenses. Specifically, the benevolent AT maintained task communication as in a neutral condition, but included messages of support and awareness of errors. Benevolent communication reduced reported workload and increased reported team collaboration, indicating that this team intent was beneficial. In addition, trust and acceptance of the AT were rated higher by individuals tasked with depending on the system to protect them from missile threats. The need for information from ATs is beneficial, however may vary depending on team type.


2013 ◽  
Vol 12 (1) ◽  
pp. 124-139
Author(s):  
Monika Jean Ulrich Myers ◽  
Michael Wilson

Foucault’s theory of state social control contrasts societal responses to leprosy, where deviants are exiled from society but promised freedom from social demands, and the plague, where deviants are controlled and surveyed within society but receive some state assistance in exchange for their cooperation.In this paper, I analyze how low-income fathers in the United States simultaneously experience social control consistent with leprosy and social control consistent with the plague but do not receive the social benefits that Foucault associates with either status.Through interviews with 57 low-income fathers, I investigate the role of state surveillance in their family lives through child support enforcement, the criminal justice system, and child protective services.Because they did not receive any benefits from compliance with this surveillance, they resisted it, primarily by dropping “off the radar.”Men justified their resistance in four ways: they had their own material needs, they did not want the child, they did not want to separate from their child’s mother or compliance was unnecessary.This resistance is consistent with Foucault’s distinction between leprosy and the plague.They believed that they did not receive the social benefits accorded to plague victims, so they attempted to be treated like lepers, excluded from social benefits but with no social demands or surveillance.


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