Friday, February 23, 2024

Pigovian tax & Discount house

Pigouvian tax:  It is a tax levied on any market activities that generates negative externalities. This tax objective is to correct an inefficient market outcome. Example: Impose more tax on gold imports  

Discount house: Money dealer that participate in the buying and discounting (Selling) of bills of exchange and other financial products such as money market instruments, government bonds. 

Pigovian tax & Discount house

Pigouvian tax:  It is a tax levied on any market activities that generates negative externalities. This tax objective is to correct an inef...