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Summer School 2: How taxes change behavior and the economy

Planet Money

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Understanding Negative Externalities and the Role of Pigouvian Tax

This chapter delves into the notion of marginal utility while highlighting the societal costs associated with negative externalities that private actions impose. It discusses the concept of a Pigouvian tax as a viable solution for integrating these costs into product pricing, and wraps up with announcements about a live graduation event and future topics on government spending.

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