Tagged: Coase

Coasean biosecurity externalities - The Dismal Science

Eric Crampton May 26, 2015

Michael Reddell beat me to the punch on this one.The budget's imposed a customs levy on air travellers to cover the costs of biosecurity border enforcement. Michael makes the simple Coasean point:A new tax on international travel.  I wonder if the government looked at the possibility of levying these costs on, for example, the apple and kiwifruit industries, for … Read More

Air Coase - The Dismal Science

Eric Crampton Feb 14, 2013

No matter how much the screaming baby on an airplane annoys you, it really isn't imposing a Pareto-relevant externality. Recall that a Pareto-relevant externality is one where there are gains from trade that fail to obtain. The airline here is residual... Read More