An Introduction to Externalities

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What are externalities and what are the different kinds of costs? And what does this have to do with the rise of “superbugs"? This video is an introduction to externalities, including the concepts of private cost, external cost, and social cost. Using the example of antibiotics and viruses, we take a look at how costs are passed along to different members of society beyond the producer and consumer. We’ll use a chart to illustrate how to calculate the effects of a Pigouvian tax, and we provide definitions for the other key terms that will be used throughout this video series.
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17 мар 2015

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Комментарии : 65

@heldervicentec5178 4 года назад

Who is watching this during Covid 19? so real like today situation

@ThePeterDislikeShow 3 года назад

I wonder instead of forcing people to stay home maybe we can use a pigovian tax so that only the most important outings are taken?

@jtswanner 9 лет назад

You guys are seriously awesome. I've watched every video up to this one so far, and I have to say that it's insanely informative. Great job on all this!

@MarginalRevolutionUniversity 9 лет назад

Joseph Swanner Thank you! We appreciate any feedback you have - you can email us directly at support at mruniversity dot com or leave notes at feedback.mruniversity.com. We are trying a bunch of different stuff out so we love to hear feedback and what people like or don't like.

@ChrisSace 8 лет назад

That was clear and concise... have been trying to understand this concept for a week now. Thank you!

@poetsonsurg7543 4 года назад

These videos are really well explained. I've watched heaps in preparation for a new job and enjoyed them all. Thanks so much for this content.

@akshay412sam 7 лет назад

This channel is brilliant! The videos explain economic concepts so lucidly and it is just so comfortable to watch. You are helping a lot of students and that is a great service to the society. The negative externalities are going down by your positive effort!!

@MarginalRevolutionUniversity 7 лет назад

Thank you Akshay! -Roman

@SmahkForexAcademyTanzania 6 лет назад

PLEASE GUYS SUBSCRIBE TO "SMAHK ACADEMY" CHANNEL Our Aim is to Provide Free Range Education to Anyone Around The World, In All Academic Aspects as SCIENCE & ENGINEERING,COMPUTING,ARTS & HUMANITIES,ECONOMICS & FINANCE; Through Multi Language System And Harmonized Learning Process..... SUBSCRIBE TO JOIN OUR COMMUNITY. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-enLIEASmCAw.html

@leahpugh7297 6 лет назад

This was a great explanation. Thank you for the information!

@jessicatoussaint4983 8 лет назад

you guys are awesome!!!! thank you and pray that God will bless y'all :)

@worldcitizen2249 6 лет назад

A fun drinking game: drink a shot every time he says "antibiotic(s)".

@Kniatty 3 года назад

Obrigado por compartilhar conhecimento conosco.

@KanekiKen-pk7wr 7 лет назад

This video is absolutely Awesome!!!!!!!!!

@guilhermeadan2329 6 лет назад

exceptional explanation !

@giftyarthur5881 6 лет назад

This channel does an awesome job of explaining economic concepts. Thank you so much for making learning easy and very insightful.

@GloriaAtimYoutubeCoach 3 года назад

Am in class right now and this video made my research easy

@davidvg946 5 лет назад

You may include portuguese subtitles too. Thank you, amazing work ;)

@audreychoi8797 4 года назад

clear explanation! thank you very much :)

@ngng8885 6 лет назад

I really need to comment!!!!!! It is so useful!!!

@TheFedericohiguain2 5 лет назад

Wow I spend 30 minutes trying to understand my textbook about externalities and I couldn’t get it but your explanation was just amazing, now I understand everything, you got a new subscriber I’m looking forwards to more of your videos. Thanks!

@hangbui5518 6 лет назад

this channel is very useful. thank u very much

@drmksharma 3 года назад

Really relevant now also in case of Covid-19 mutating again and again and becoming more dangerous, its has become more resistant...Awesome explanation, surprisingly 5 years back...

@SingDownUnder 7 лет назад

I also love your channel and use it regularly for my classes here in Auckland New Zealand. However this vid (intro to Exteralities) is confusing. Our textbook obeys a convention that negative externalities of consumption reduce social benefits (MB shifts left to MSB), rather than shifting the MC curve left to MSC consistent with your wording of "external cost" AS far as I can see the convention is useful and otherwise universal. Am I missing something. Owen Sharpe

@shashankgupta3982 9 лет назад

Thanks for this great video a lot !!!! The subtitles in video is blocking some part of the graph. So please adjust the subtitle such that we can see and understand the graph more clearly.

@shalommichael7013 4 года назад

can you give an example of external cost

@fehmidaghazal3290 6 лет назад

Very nice video

@TheTyrellWellick 3 года назад

The ideal solution IMO is using money from the Pigouvian tax for compensating external costs. An example would be a CO2 tax that is used for planting trees.

@Upgraded4552 5 лет назад

Is Private Cost made up of costs incurred producers and/or consumers or just costs incurred by producers? There seems to be no consensus in literature over this matter.

@newworkleatherdetroit5610 8 лет назад

Pigouvian tax formula at 10:40. Thanks I'm subscribing. Great analogy.

@SmahkForexAcademyTanzania 6 лет назад

@robindragirl 7 лет назад

THAAAAANK YOU SOOO MUCH

@Lex-zq3mb 3 года назад

I think I understand, but how does one put a number on the social cost?

@beaciara6179 8 лет назад

You guys are the best! Thank you!

@gandalfsmom 3 года назад

"antabuyotics"

@Simran-xn7ec 7 лет назад

I promise that once I start earning, I would definitely contribute money for this channel :)

@SmahkForexAcademyTanzania 6 лет назад

@ThePeterDislikeShow 3 года назад

The Chinese guy who ate a sick bat last winter probably created the biggest externality in history.

@dannycollins9643 4 года назад

good shit

@MaRta-py7mb 8 лет назад

In the case of farmers giving antibiotics to live stock it is negative externality of production - that I understand. But when people overuse antibiotics, why don't we treat it as negative externality of consumption with the private benefit higher than the social benefit?

@carlosswanton 3 года назад

You are talking about a negative production externality when the example should be about a negative consumption externality. A negative production externality will be corporations imposing a cost on society, while a negative consumption externality is about individuals overconsuming a good ( like your example ).

@mahsaomrauni 7 лет назад

awesome ...keep going. thanks a million

@MarginalRevolutionUniversity 7 лет назад

Thank you! Best, Roman

@SmahkForexAcademyTanzania 6 лет назад

@user-in6qc4gx8g 4 месяца назад

6:08 / 12:14

@suprxme663 Год назад

😀

@andrea-vb8ls 6 лет назад

very helpful 🤩

@sinistril 6 лет назад

Thanks for the video... but the subject matter is just an iteration of the nirvana fallacy.

@changlexu1039 4 года назад

Anyone suffering from the Essay of ECON10331?

@GustavoRivasMendez 7 лет назад

Isn't there another way to reduce antibiotics use? The way I see it, increasing their price is hurting poor people, because people who are not poor will always be able to afford the medicine. Rich people don't want to be sick, and they have the money, and there are no substitutes, so their demand curve is pretty inelastic. Poor people however, have an elastic curve, not because of substitutes but because they simply cannot afford it. I can't think of a solution, but it still seems unfair to me.

@1001spencer 7 лет назад

The only ethical way would be to price vaccines based on the consumers income, but the same can be said for any good or service if you're taking equity into account. Hope that makes sense

@joeryan728 7 лет назад

Its completely fair. It's a good. Poor people have the same opportunity to buy them, they just can't afford it. Same as a huge house, or nice car. The opportunity is the same, the market is fair.

@sinistril 6 лет назад

When government intervenes, the market is no longer fair.

@dahliafully 6 лет назад

because these economic theories are fascist... and i do not use that word lightly. they are privatizing the profit and socializing the cost. the lure of efficiency is biting itself in the foot.

@erickschusterdeoliveira2662 5 лет назад

@@1001spencer sorry for necro'ing but to my eye it seems that instead of taxing the suppliers directly, the tax should just be applied to everyone. That way, the rich foot the bill (because they can) and poor people pay less - the money collected by the state should then be redirected towards research on the field, and a maximum yearly supply of antibiotics should be instated (obviously being able to be broken if needs be, but with state authorization). That way there are less antibiotics on the market, the use of them is compensated by government-funded research, and poor people can still afford them.

@charlesretanal6041 2 года назад

wako kasabot haha

@guilhermeadan2329 6 лет назад

I would skip the baceria example to make the video more direct...

@michelsalazar2140 6 лет назад

MetraMan09 Thanks for the info. I didnt know that.

@latex1661 3 года назад

antibiotics overused vs prisoners overload. 1787 British hired sea captain to ship convicted felons...,Government would pay the captain only for prisoners who arrived alive.