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Externalities in Theory

Jonathan GruberDistinguishedMIT

Professor

1:17:13·2026·undergraduate level
Path step 6: Models Pigouvian taxation and Coasean bargaining in the presence of production and consumption externalities.

This lecture delineates the theoretical foundations of externalities, examining their impact on public goods, social insurance, and taxation. It provides a conceptual basis for understanding market failures arising from external effects.

MIT 14.41, Public Finance and Public Policy, Fall 2024

Source: MIT OpenCourseWare via YouTubeWatch on YouTube

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