Abstract
The taxes and subsidies with which we shall be concerned are the corrective or Pigovian ones that could in theory be used to bring marginal private costs or benefits more closely into alignment with marginal social ones. The need for alignment arises when externalities (whether economies or diseconomies), operating at the margin, cause a divergence.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Buchanan, J.S., and W.C. Stubblebine. 1962. Externality. Economica 26: 371–384.
Coase, R.H. 1960. The problem of social cost. Journal of Law and Economics 3: 1–44.
Pigou, A.C. 1932. The economics of welfare, 4th ed. London: Macmillan.
Pigou, A.C. 1947. A study in public finance, 3rd ed. London: Macmillan.
Turvey, R. 1963. On divergences between social cost and private cost. Economica 30: 309–313.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Graaff, J.d.V. (2018). Taxes and Subsidies. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1792
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_1792
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences