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Externality
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Chapter 14. Externality. Externality. Positive externality (Spillover Benefit): Flu shots ... Close the gap between social cost-benefit and private cost-benefit ... – PowerPoint PPT presentation
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Title: Externality
1
Chapter 14
- Externality
2
Externality
- Positive externality
- (Spillover Benefit) Flu shots
- Negative externality
- (Spillover Cost) Pollution
3
Public Measures
- Positive Externality Subsidy
- Negative Externality Taxation
- Achieve optimal market allocation
- Close the gap between social cost-benefit and
private cost-benefit
