Economic theory states that under situations of high transaction costs of mutual agreement between parties, they are an efficient way to promote public interest and will lead to GDP growth.
Economic theory states that under situations of high transaction costs of mutual agreement between parties, they are an efficient way to promote public interest and will lead to GDP growth.* Economists and some politicians also favor them over regulation, because they succeed in increasing tax revenue where regulation fails and they provide further incentive to reduce the negative externality beyond the maximum set by regulation. FTP, what are these taxes enacted to correct the effects of negative externalities, which are named for Arthur Pigou and which often include so-called sin taxes?
Economic theory states that under situations of high transaction costs of mutual agreement between parties, they are an efficient way to promote public interest and will lead to GDP growth.
Pigovian Tax (prompt on sin tax before it is said, but do not accept it afterwards)