Consider the case of a rival bad. Would efficiency require that a Pigovian fee be levied on
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Consider the case of a rival bad. Would efficiency require that a Pigovian fee be levied on the producer of the bad and the receipts given to the consumers as compensation? Does it matter if the bad is excludable or nonexcludable?
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Efficiency in the case of a rival bad would indeed often require the implementation of a Pigovian fee which is a form of corrective taxation aimed at ...View the full answer
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