FilE COpy · DO NOT REMOVE # 439 - 77 NSTTUTE FOR RESEARCH ON PO ~ fER
نویسنده
چکیده
The central issue examined in this paper is this: ,Under what circumstances ought governmentally-imposed standards be favored over other policy instruments? The main points made in this paper are as follows. First, the controversy over whether taxes are preferable to quantitative controls was resolved by demonstrating the formal equivalence of taxes and standards. It is always possible to translate a tax into a standard--or, alternatively, a standard into a tax--by equating the tax function and the penalty function of the standard. Second, the important distinction between "performance" (or output) standards and "technical" (or input) standards is drawn•. In practice, it seems that the key differences between taxes and standards are precisely the same as the differences between performance and technical standards. Our analysis suggests that the debate over taxes and standards could fruitfully be reframed in these terms--that is, performance versus technical standards--rather than in terms of prices versus quantitative controls. It is technical (or input) standaras, rather than standards in general, that are objectionable ,on economic efficiency grounds. Finally, performance standards may be preferable, on efficiency grounds, to information-provision programs whenever there are significant costs a~sociated with the collection, dissemination, or processing of information. In addition, even if performance standards are inefficient policy instruments (relative to the provision of information) they may nevertheless.be justified on equity grounds. Governmentally-Imposed Standards: Some Normative Aspects
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