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externality
(redirected from Negative externality)

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externality

The difference between the social cost or benefit of an economic activity and its private cost or benefit. For example, if a company pollutes the atmosphere but pays nothing to the government or the community for this, then the pollution becomes an externality.
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In particular, they document a negative externality from inequality: when the distribution of wealth is too skewed, the middle class is excluded from the market.
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Because low vaccination rates have a negative externality on society, it is important to identify the decision-making process of the individual.
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In particular, there is virtually no literature that explores in any detail the significance of a conceptualization of tax avoidance as a negative externality for the choice of policy instrument.
Building a better GAAR by Edgar, Tim / Virginia Tax Review
 
 
 
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