Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php:6131) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/feed-rss2-comments.php on line 8
Comments on: Where is the externality here? http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/ The Visible Hand in Economics Thu, 16 Jul 2009 15:57:15 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Curious Cat Investing and Economics Carnival #3 at Curious Cat Investing and Economics Blog http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20397 Thu, 16 Jul 2009 15:57:15 +0000 http://www.tvhe.co.nz/?p=4017#comment-20397 […] Where is the externality here? by Matt Nolan – “They are paid less because their marginal product is lower, and they are willing to be paid less because the benefit they receive from consuming alcohol is sufficient compensation – this is a completely internalised decision for the drinker isn’t it, so where is the social cost.” […]

]]>
By: Matt Nolan http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20328 Mon, 13 Jul 2009 04:12:42 +0000 http://www.tvhe.co.nz/?p=4017#comment-20328 “It’s not only in the work place we lose because of excessive drinking. Wake up and just look out our county jails and prisons. They are overflowing with drug and alcohol offenders … etc”

I was not saying there is no external cost from alcohol – far from it, we have accepted an external cost in the past, and discussed how to deal with it.

I was saying that I don’t think THIS SPECIFIC external cost exists. Such as when I said this at the start:

“I see that generally an externality from lost output, excessive unemployment, and forgone wages has been assumed in the discussions.”

]]>
By: Women Bikers http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20326 Mon, 13 Jul 2009 00:36:40 +0000 http://www.tvhe.co.nz/?p=4017#comment-20326 Where is the social cost??? I’m sorry if I get a tad bit high pitched here, but are you kidding me. Look around. It’s not just a work thing. Yes employers stand to lose quit a bit if they have drunk employees. I did a few times. It goes much deeper then this though. It’s not only in the work place we lose because of excessive drinking. Wake up and just look out our county jails and prisons. They are overflowing with drug and alcohol offenders. Alcohol kills more people each year then all of the other drugs combined. And to top it off, us non drinking tax payers have to dip into our pockets every year to fund state run rehabilitation clinics so that some drunk can get sober only to go back out on the street and start the process all over again. If society is to blame should really be blamed for being so tolerant of alcoholism as a whole. Yes there is a high social cost of alcohol. It is our tolerance of it…

]]>
By: RC gas cars http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20317 Sun, 12 Jul 2009 06:25:51 +0000 http://www.tvhe.co.nz/?p=4017#comment-20317 Incomplete information and incomplete contracts mean that the cost to the firm isn’t efficiently dealt with. I can accept that there’s an efficiency loss here, I just struggle to believe that it’s relevant to policy-making.

I generally agree with this statement. Efficiency loss in evident in this market.

]]>
By: cheap wedding gowns http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20315 Sat, 11 Jul 2009 18:43:41 +0000 http://www.tvhe.co.nz/?p=4017#comment-20315 I just wanted to make sure I wasn’t getting confused when I felt that people treating alcoholic workers as an externality is a bit weird.

]]>
By: Araba http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20311 Sat, 11 Jul 2009 14:07:06 +0000 http://www.tvhe.co.nz/?p=4017#comment-20311 I advance that not alone are bashed humans worse at parenting(anyone is beneath accommodating and absolutely able to advice with account afterwards a canteen of bourbon) but added absorbed to accomplish crimes adjoin their accouchement (abuse). This is alarming for the accouchement at the time, and aswell has repercussions on their learning, development, and angle on life. Big change of tack, but won’t somebody anticipate of the children? Surely the humans that are actively disadvantaged by alcoholism are the accouchement of alcoholics.

]]>
By: Mert2407 http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20309 Sat, 11 Jul 2009 11:03:27 +0000 http://www.tvhe.co.nz/?p=4017#comment-20309 very nice post. dude, this blog is powerful.. 😉

im write here:

http://www.mert2407.com/

]]>
By: NormWorks http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20280 Wed, 08 Jul 2009 16:31:59 +0000 http://www.tvhe.co.nz/?p=4017#comment-20280 was nice article.
thank you.

]]>
By: Matt Nolan http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20261 Wed, 08 Jul 2009 02:07:08 +0000 http://www.tvhe.co.nz/?p=4017#comment-20261 @Robbie

Indeed. However in so far as thinking about the regulation of alcohol, this matters insofar as we think the average alcoholic parent does not value their child relative to a non-alcoholic parent. This has to be the policy relevant point, and I’m not sure that a tax would be the best way to fix that.

The parent child relationship is always a tough one because of the asymmetry in power, both legally and socially. Furthermore, we should recognise that it matters for development. However, quantifying the specific cost of alcoholic parents, and figuring out the policy relevant way of dealing with it, is a difficult question.

Furthermore, any focus on that question without the realisation that non-alcoholic parents can do similar things, and without an understanding of the relationship between alcohol and other facts, would likely lead to a greater than optimal amount of state intervention.

We may see cases where we wish the state did intervene at the moment, but is the benefit of intervention in these cases worth the cost of interference in other healthy parental relationships?

]]>
By: Robbie http://www.tvhe.co.nz/2009/07/08/where-is-the-externality-here/#comment-20260 Wed, 08 Jul 2009 01:46:26 +0000 http://www.tvhe.co.nz/?p=4017#comment-20260 Big change of tack, but won’t somebody think of the children? Surely the people that are seriously disadvantaged by alcoholism are the children of alcoholics.

I assert that not only are drunk people worse at parenting(anyone is less willing and indeed able to help with reading after a bottle of bourbon) but more inclined to commit crimes against their children (abuse). This is traumatic for the children at the time, and also has repercussions on their learning, development, and outlook on life.

]]>