External Benefits

Share this & earn $10
Marginal Revolution University
Published at : 23 Dec 2020
98063 views
409
16

What can the flu teach us about economics and externalities? In this video, we go over how vaccines produce positive externalities that help people stay healthy. When someone receive the vaccine, they pass along the positive benefits of the vaccine to others, generating positive externalities. However, when someone gets a vaccine, they bear all of the costs and only reap some of the benefits of the vaccine. The social value is larger than the private value, resulting in an an undersupply of flu shots. One solution to this problem is a Pigouvian subsidy — a subsidy on a good with external benefits.

Microeconomics Course: http://bit.ly/20VablY

Ask a question about the video: http://bit.ly/1TGqOTf

Next video: http://bit.ly/1WJnlBq

Help us caption & translate this video!

http://amara.org/v/GRz9/
externalitiespositive externalitynegative externality

Lionel Messi ► 24kGoldn - Mood ft. iann Dior ● Skills and Goals | N3Gann

Lionel Messi ► 24kGoldn - Mood ft. iann Dior ● Skills and Goals | N3Gann

Nikolai Kapustin - Motive Force Op. 45

Nikolai Kapustin - Motive Force Op. 45

Background music for enjoying life & feeling alive █ background music for videos happy / travel

Background music for enjoying life & feeling alive █ background music for videos happy / travel

888Hz 88Hz 8Hz Abundance Gate,  Big Blessing, Transform into abundance frequency, Infinite abundance

888Hz 88Hz 8Hz Abundance Gate, Big Blessing, Transform into abundance frequency, Infinite abundance

Hits Of Ravi B Karma Me Crazy Mix By Dj Wazim

Hits Of Ravi B Karma Me Crazy Mix By Dj Wazim

Mahalia - Good Reason

Mahalia - Good Reason

An Invitation

An Invitation

Access to English - Getting On - Chapter 14

Access to English - Getting On - Chapter 14

SPEED REVIEWS ...with DRUGSTORE DUPES splashed in bc I can't help it

SPEED REVIEWS ...with DRUGSTORE DUPES splashed in bc I can't help it

Stollen (German Holiday Bread) | Basics with Babish

Stollen (German Holiday Bread) | Basics with Babish

The Significance Factor: How To Expand Your Vision Of Your Life And Grow Rapidly

The Significance Factor: How To Expand Your Vision Of Your Life And Grow Rapidly

Growth Vs Value Investing

Growth Vs Value Investing

Defeat in Detail: A Strategy to Defeating Larger Armies

Defeat in Detail: A Strategy to Defeating Larger Armies

VIRGO CRAZINESS!! YOU MAY WANT TO SIT DOWN FOR THIS!! WEEKLY TAROT JAN 25 TO 31

VIRGO CRAZINESS!! YOU MAY WANT TO SIT DOWN FOR THIS!! WEEKLY TAROT JAN 25 TO 31

Democracy's Lethal Cocktail: Demagoguery, Disinformation, Destitution | The Mehdi Hasan Show

Democracy's Lethal Cocktail: Demagoguery, Disinformation, Destitution | The Mehdi Hasan Show

Մանուկյանի կոչը բանակին ու ոստիկանությանը․ Միացեք ժողովրդին, դուք ձեզ դրանով կարդարացնեք

Մանուկյանի կոչը բանակին ու ոստիկանությանը․ Միացեք ժողովրդին, դուք ձեզ դրանով կարդարացնեք

FLOYD MAYWEATHER FLOSSIN NEW FEMALE FRIEND & LAVISH GRAND THEFT AUTO COLLECTION IN LIVE PALACE TOUR

FLOYD MAYWEATHER FLOSSIN NEW FEMALE FRIEND & LAVISH GRAND THEFT AUTO COLLECTION IN LIVE PALACE TOUR

35 Kitchen Gadgets to Speed Up Your Cooking Routine || 5-Minute Recipes to Become a Chef!

35 Kitchen Gadgets to Speed Up Your Cooking Routine || 5-Minute Recipes to Become a Chef!

Minecraft, But You Can Mine The Entire Chunk...

Minecraft, But You Can Mine The Entire Chunk...

Is WH’s 'Cautious Optimism' On The Mueller Report Warranted? | Velshi & Ruhle | MSNBC

Is WH’s 'Cautious Optimism' On The Mueller Report Warranted? | Velshi & Ruhle | MSNBC

The NEW Lost Journal Scraps & Secrets in Stardew Valley 1.5!

The NEW Lost Journal Scraps & Secrets in Stardew Valley 1.5!

HOW TO ANIMATE DRAWINGS WITHOUT ANY GADGETS OR PROGRAMS

HOW TO ANIMATE DRAWINGS WITHOUT ANY GADGETS OR PROGRAMS

The Horse Whisperer OST- 26. The Vast Continent

The Horse Whisperer OST- 26. The Vast Continent

Marcaux - Harm

Marcaux - Harm

Guts - Brand New Revolution (Official Audio) HQ

Guts - Brand New Revolution (Official Audio) HQ

FEEL THE BREATH OF THE SPIRIT...FOR SOON THE "LIGHT" SHALL APPEAR

FEEL THE BREATH OF THE SPIRIT...FOR SOON THE "LIGHT" SHALL APPEAR

How to make an academic poster in powerpoint

How to make an academic poster in powerpoint

How To Do A Rugby Tackle

How To Do A Rugby Tackle

7M: Who's Most Likely

7M: Who's Most Likely

Romantic Love Song 2020 Playlist All Time Great Love Songs WESTlife Shayne Ward Backstreet BOYs MLTr

Romantic Love Song 2020 Playlist All Time Great Love Songs WESTlife Shayne Ward Backstreet BOYs MLTr

Day 2 - Stretch & Soothe - 30 Days of Yoga

Day 2 - Stretch & Soothe - 30 Days of Yoga

Behind Bars: The World’s Toughest Prisons - Antananarivo Prison, Madagascar | Free Documentary

Behind Bars: The World’s Toughest Prisons - Antananarivo Prison, Madagascar | Free Documentary

Rare Exports : A Christmas Tale | trailer #1 US (2010)

Rare Exports : A Christmas Tale | trailer #1 US (2010)

[Yule Log Audio] My Favorite Things – Pentatonix

[Yule Log Audio] My Favorite Things – Pentatonix

Iron Maiden - Can I Play With Madness (Official Video)

Iron Maiden - Can I Play With Madness (Official Video)

Quebec to reform Bill 101 in an effort to Protect the French Language

Quebec to reform Bill 101 in an effort to Protect the French Language

Top 10 Elvis Presley Songs

Top 10 Elvis Presley Songs

Rhetorical Devices For Persuasion

Rhetorical Devices For Persuasion

Ray Dalio’s Dollar Crash Prediction. Here’s How It Will Happen

Ray Dalio’s Dollar Crash Prediction. Here’s How It Will Happen

Manifest Money FAST | 15 Minute Meditation

Manifest Money FAST | 15 Minute Meditation

Multi-Storey Car Parking in a Single Space - Traffex 2015

Multi-Storey Car Parking in a Single Space - Traffex 2015

Canada Job search websites

Canada Job search websites

How to Assemble Vanity Dresser with Mirror and Chair + Unboxing! (Shopee finds)

How to Assemble Vanity Dresser with Mirror and Chair + Unboxing! (Shopee finds)

object oriented  design |  software engineering |

object oriented design | software engineering |

GMAT Tuesday: Idioms - "Allow for" vs. "Allow to"

GMAT Tuesday: Idioms - "Allow for" vs. "Allow to"

changes fall apart mashup ( i fall apart & changes ) xxxtentacion x post malone

changes fall apart mashup ( i fall apart & changes ) xxxtentacion x post malone

Are You Bored With Art?

Are You Bored With Art?

5 Systems to Help You Achieve Your 2021 Goals

5 Systems to Help You Achieve Your 2021 Goals

Ziggy Marley - Bob Marley 75th Celebration (pt. 1)

Ziggy Marley - Bob Marley 75th Celebration (pt. 1)