Tuesday, August 21, 2007

Pigou on Steroids

Here is a proposal for a Pigovian tax on some professional baseball players:
He [J.C. Bradbury, author of The Baseball Economist] proposes that the players' union should adopt its own testing policy. The union itself would fine players who use steroids and distribute the fines among the other players�very sensible, since steroid users are imposing costs on other members of the union.
Sounds good to me.

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