Open AccessBook
The Problem of Social Cost
Reads0
Chats0
TLDR
In this paper, it is argued that the suggested courses of action are inappropriate, in that they lead to results which are not necessarily, or even usually, desirable, and therefore, it is recommended to exclude the factory from residential districts (and presumably from other areas in which the emission of smoke would have harmful effects on others).Abstract:
This paper is concerned with those actions of business firms which have harmful effects on others. The standard example is that of a factory the smoke from which has harmful effects on those occupying neighbouring properties. The economic analysis of such a situation has usually proceeded in terms of a divergence between the private and social product of the factory, in which economists have largely followed the treatment of Pigou in The Economics of Welfare. The conclusions to which this kind of analysis seems to have led most economists is that it would be desirable to make the owner of the factory liable for the damage caused to those injured by the smoke, or alternatively, to place a tax on the factory owner varying with the amount of smoke produced and equivalent in money terms to the damage it would cause, or finally, to exclude the factory from residential districts (and presumably from other areas in which the emission of smoke would have harmful effects on others). It is my contention that the suggested courses of action are inappropriate, in that they lead to results which are not necessarily, or even usually, desirable.read more
Citations
More filters
Posted Content
Bonuses to Workers and Employers to Reduce Unemployment: Randomized Trials in Illinois
TL;DR: In the first experiment, a $500 bonus was offered to eligible applicants who obtained employment within 1] weeks, which reduced the number of weeks of insured unemployment averaged over all assigned claimants whether or not they participated, by more than one week.
Journal ArticleDOI
The Roles of the State and the Market in Establishing Property Rights
TL;DR: It is an old saw of the economics profession that markets require a clear assignment of initial entitlements to most resources and well-enforced rules of contract, and that governments intent on fostering a market economy should thus make sure to put an effective legal system in place, one in which property rights are unambiguous, secure and freely alienable.
Journal ArticleDOI
National road casualties and economic development.
TL;DR: In lower income countries a rise in traffic-related crashes, injuries, and deaths accompanies economic growth, and at a threshold of around 1,500 dollars-8,000 dollars per capita economic growth no longer leads to additional traffic deaths, although crashes and traffic injuries continue to increase with growth.
Posted Content
Supply Chain Risk Management in Financial Crises – A Multiple Case-Study Approach
TL;DR: In this paper, the authors investigate successful approaches and experiences by companies in dealing with the new reality, especially as it concerns the supply side, and develop a set of propositions about how enterprises manage supply risks in the financial crises.
Journal ArticleDOI
Economics of Social Capital
TL;DR: In this paper, the authors study the various contexts in which the promises people make to one another are credible and then suggest that the accumulation of social capital is a possible route to creating such a context.
References
More filters
Book
The law of torts
TL;DR: A single volume introduction to contemporary tort and injury law is presented in this paper, which covers direct and intentional interference with person or property and explores their defenses, and reviews liabilities, damages, and the apportionment of responsibility among parties, and examines the criticism and choices in tort law.