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.
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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
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DOI: https://doi.org/10.1057/978-1-349-95189-5_1792
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