Pigou, Arthur Cecil

(redirected from Arthur Cecil Pigou)
Also found in: Encyclopedia, Wikipedia.

Pigou, Arthur Cecil

(1877–1959) an English economist who developed the theory of WELFARE ECONOMICS in his book The Economics of Welfare (1919). Pigou preferred to accept market prices as indicators of the relative utilities of different goods, but he argued that divergence between private returns and social returns could necessitate taxes and subsidies to achieve an optimal allocation of resources. This distinction between marginal private net product and marginal social net product provided a case for state intervention to increase the efficiency of resource allocation. Pigou thought that interpersonal comparisons have to be made in formulating policy, and he made out a case for a more equitable DISTRIBUTION OF INCOME on the ground of diminishing marginal utility of income.

See REAL BALANCE EFFECT.

Mentioned in ?
References in periodicals archive ?
Between 1915 and 1925, Arthur Cecil Pigou was perhaps the most active scholar in investigating the implications of World War I for the British economy.
A primeira teoria a encontrar ressonancia entre os economistas que se dedicaram a analisar o tema das externalidades e de sua internalizacao foi aquela formulada por Arthur Cecil Pigou, (17) ainda na decada de 1920.
The latest long-dead economist to enthrall bloggers, policy wonks, and entrepreneurial analysts is Arthur Cecil Pigou, whose authority is now being used to justify a blizzard of taxes and other actions proposed to serve the public interest.
A taxa pigouviana, assim chamada em homenagem ao economista ingles Arthur Cecil Pigou, foi quem primeiro sugeriu essa taxa de compensacao, conceitualmente, trata de um imposto sobre unidade de poluicao emitida que deve ser igual ao custo marginal social dessa poluicao no nivel otimo da emissao.