Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273819 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2023-008/VIII
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
Public benefit-cost analysis of market policies often relies on a particular definition of market surplus that adds up consumer and producer surplus and external costs. This paper provides an overview of conceptual strategies to deal with moral considerations and then develops an adjusted market surplus function that is able to deal with heterogeneous normative perspectives. In a stylised model, new expressions for first-best Pigouvian taxes are developed that depend on moral considerations. A novel moral rule-of-half approximation is provided for the potential surplus gains of taxation or behavioural change.
Subjects: 
Welfare economics
Moral considerations
Normative Pluralism
Ethics and market value
Benefit-cost analysis
Pigouvian taxation.
JEL: 
D04
D61
D62
D63
B59
A13
Document Type: 
Working Paper

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