Govt 2: How taxes change behavior and the economy (Taxes)
Planet Money Summer School
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Understanding Pigouvian Taxes and Externalities
This chapter explores the life and contributions of economist Arthur Pigou, focusing on his creation of Pigouvian taxes aimed at addressing negative externalities like pollution. It highlights the relevance of his ideas in contemporary discussions about the government's role in regulating economic behavior. The chapter simplifies complex economic concepts using accessible graphics, illustrating the importance of social marginal costs in pricing goods and promoting responsible production practices.
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