Search results for: “Social cost/”

The Problem of Social Cost   X. A CHANGE OF APPROACH It is my belief that the failure of economists to reach correct conclusions about the treatment of harmful effects cannot be ascribed simply to a few slips in analysis. It stems from basic defects in the current approach to problems of welfare economics. What…

The Problem of Social Cost   The definition of the social product is queer but this does not mean that the conclusions for policy drawn from the analysis are necessarily wrong. However, there are bound to be dangers in an approach which diverts attention from the basic issues and there can be little doubt that…

The Problem of Social Cost   I have examined in considerable detail one example of a divergence be- tween private and social products and I do not propose to make any further examination of Pigou’s analytical system. But the main discussion of the prob- lem considered in this article is to be found in that…

The Problem of Social Cost   Consider a railway, which is not liable for damage by fires caused by sparks from its engines, which runs two trains per day on a certain line. Suppose that running one train per day would enable the railway to perform services worth $150 per annum and running two trains…

The Problem of Social Cost   Consider a railway, which is not liable for damage by fires caused by sparks from its engines, which runs two trains per day on a certain line. Suppose that running one train per day would enable the railway to perform services worth $150 per annum and running two trains…

The Problem of Social Cost   Pigou’s underlying thought would appear to be: Some have argued that no State action is needed. But the system has performed as well as it has because of State action. Nonetheless, there are still imperfections. What additional State action is required? If this is a correct summary of Pigou’s…

The Problem of Social Cost   VII. THE LEGAL DELIMITATION OF RIGHTS AND THE ECONOMIC PROBLEM The discussion in Section V not only served to illustrate the argument but also afforded a glimpse at the legal approach to the problem of harmful effects. The cases considered were all English but a similar selection of American…

The Problem of Social Cost   VII. THE LEGAL DELIMITATION OF RIGHTS AND THE ECONOMIC PROBLEM The discussion in Section V not only served to illustrate the argument but also afforded a glimpse at the legal approach to the problem of harmful effects. The cases considered were all English but a similar selection of American…

The Problem of Social Cost   It is clear that an alternative form of economic organisation which could achieve the same result at less cost than would be incurred by using the market would enable the value of production to be raised. As I explained many years ago, the firm represents such an alternative to…