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It is just confusing to use the same word to suggest explicit assistance (cash, tax breaks, etc) and "failure to penalize". I guess mathematically they both re
by gwright 7y ago
It is just confusing to use the same word to suggest explicit assistance (cash, tax breaks, etc) and "failure to penalize". I guess mathematically they both represent a reduction in cost when compared to an alternative scenario (no subsidy and some sort of tax/fee for the externality) but they are different mechanisms and so it makes sense for them to have different words to describe them if you want to communicate clearly.