Prices vs. Quantities with fiscal cushioning
نویسندگان
چکیده
منابع مشابه
Prices vs. Quantities
The setting for the problem under consideration is a large economic organization or system which in some cases is best thought of as the entire economy. Within this large economic organization resources are allocated by some combination of commands and prices (the exact mixture is inessential) or even by some other unspecified mechanism. The following question arises. For one particular isolate...
متن کاملPrices vs. Quantities with Incomplete Enforcement
This paper extends Weitzman’s (1974) “Prices vs. Quantities” to allow for incomplete enforcement. Whether the regulator uses prices (e.g., taxes) or quantities (e.g., tradeable quotas), a first-best design is always inefficient in the presence of incomplete enforcement. A second-best design that incorporates incomplete enforcement, and where cost and benefit curves are known with certainty, can...
متن کاملPrices vs. Quantities with Banking and Borrowing
It seems to be a not uncommonly held view that intertemporal banking and borrowing of tradeable permits might tilt the ‘prices vs. quantities’debate towards looking relatively more favorably upon time-flexible quantities. The present paper shows that this view is incorrect for a natural dynamic extension of the original ‘prices vs. quantities’ information structure, which here allows the firms ...
متن کاملPrices vs. Quantities: Why Environmentalists Oppose the Market (so Far)
Theory: Scholars have long acknowledged that regulations based on price mechanisms are the most efficient means of pollution abatement, yet environmentalists have tended to oppose them in favor of quantity restrictions. The conventional explanation that environmentalists are either uninformed or behaving irrationally when they oppose the market underestimates their capacity to act in their own ...
متن کاملPrices vs. Quantities Revisited: The Case of Climate Change
Uncertainty about compliance costs causes otherwise equivalent price and quantity controls to behave differently. Price controls – in the form of taxes – fix the marginal cost of compliance and lead to uncertain levels of compliance. Meanwhile quantity controls – in the form of tradable permits or quotas – fix the level of compliance but result in uncertain marginal costs. This fundamental diff...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Resource and Energy Economics
سال: 2012
ISSN: 0928-7655
DOI: 10.1016/j.reseneeco.2011.10.004