Assertion: pigovian tax | /r/CapableOf | create long-run social optimum
Facets:
Source sentences:
text: Robert Kohn responded to this article in "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities: Comment," saying that a Pigovian tax on pollution emissions can, in fact, create the long-run social optimum without a lump-sum tax-subsidy.
text: In the first-best case, the government does not need to get revenue from distortionary taxes such as the income tax, and the Pigovian tax can create the long-run social optimum.