July 28, 2008
Best Sentences I've Read Today*
Glen Whitman takes Coase seriously with respect to internalities:
Given the reciprocal nature of the problem, and having no further information, we could just as easily conclude that the long-run self imposes internalities on the short-run self that require correction. Perhaps we should tax weight-loss clinics.
Even among "normal" individuals, studies show that excessive self-control efforts can lead to underconsumption of desirable things. Perhaps we should subsidize Krispy Kreme. (p. 5)
*--MR, as always.
Posted by Art Carden at 03:28 PM in
Economics