External Benefits
- Title:
- External Benefits
- Description:
-
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What can the flu teach us about economics and externalities? In this video, we go over how vaccines produce positive externalities that help people stay healthy. When someone receive the vaccine, they pass along the positive benefits of the vaccine to others, generating positive externalities. However, when someone gets a vaccine, they bear all of the costs and only reap some of the benefits of the vaccine. The social value is larger than the private value, resulting in an an undersupply of flu shots. One solution to this problem is a Pigouvian subsidy — a subsidy on a good with external benefits.
Microeconomics Course: http://mruniversity.com/courses/principles-economics-microeconomics
Ask a question about the video: http://mruniversity.com/courses/principles-economics-microeconomics/flu-shot-positive-externalities-pigovian-subsidy#QandA
Next video: http://mruniversity.com/courses/principles-economics-microeconomics/externalities-command-and-control
- Video Language:
- English
- Team:
- Marginal Revolution University
- Project:
- Micro
- Duration:
- 07:32
John Silva edited Portuguese, Brazilian subtitles for External Benefits | ||
John Silva edited Portuguese, Brazilian subtitles for External Benefits | ||
Peter Balla edited Hungarian subtitles for External Benefits | ||
Peter Balla edited Hungarian subtitles for External Benefits | ||
Peter Balla edited Hungarian subtitles for External Benefits | ||
Peter Balla edited Hungarian subtitles for External Benefits | ||
Fran Ontanaya edited Hungarian subtitles for External Benefits | ||
Fran Ontanaya edited Hungarian subtitles for External Benefits |