Which of the following could lead to a positive externality on the international scale?

Inhaltsverzeichnis Show

Setting and design
Conclusions
Data availability
Cited by (0)
What causes positive externalities?
What are the examples of positive externality?
Which of the following is a positive externality?
What are the 4 types of externalities?

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Abstract

Objective

Medicine is a scarce resource and a public good that benefits others by bettering patients’ health. COVID-19 vaccines in shortage are, 1) a scarce resource and 2) a public good with the positive externality of building herd immunity. These features are expected to drive citizens’ attitudes in opposite directions, exclusionist and inclusionist, respectively. Scarcity would drive citizens’ exclusionism, while the positive externality might mitigate exclusionism.

Setting and design

We recruited 15,000 Japanese adults and asked them to rank, in the context of a COVID-19 vaccine shortage, the deservingness of hypothetical vaccine recipients who differed according to 1) citizenship status, 2) visa type and duration of stay (if foreign), 3) occupation, 4) age, 5) whether they lived with a child, and 6) whether they lived with an elderly individual. Citizenship options were Japanese, Chinese, Taiwanese, South Korean, American, or European. The occupations were healthcare, education, other employed, self-employed, or not employed. The 6 attributes were randomly combined, and respondents were shown 3 hypothetical vaccine recipients: one was Japanese, and the others were foreigners.

Treatments

First, through a conjoint design, we created hypothetical vaccine recipients whose attributes were randomized except for the benchmark citizenship, Japanese national. Second, we randomly presented two scenarios for vaccination payments: 1) billed at cost or 2) fully subsidized by the government.

Results

1) Whether the vaccines were billed at cost or fully subsidized did not affect the rankings of deservingness. 2) Japanese citizenship was prioritized. 3) The penalty for being a foreigner was higher for individuals from nations with which Japan has geopolitical tensions. 4) Working in health or education reduced the penalty on foreigners, indicating that the positive externality related to occupation amplifies the positive externality associated with vaccination and mitigates exclusionist attitudes.

Conclusions

The positive occupational externalities that amplify the positive externality of vaccination substantially allay the foreigner penalty.

Keywords

Herd immunity

Deservingness

Positive medical externality

Positive occupational externality

Geopolitical concerns

Immigrant discrimination

Data availability

Data will be made available on request.

Cited by (0)

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What causes positive externalities?

A positive externality occurs when a benefit spills over. So, externalities occur when some of the costs or benefits of a transaction fall on someone other than the producer or the consumer. Imagine there's a factory in your town that produces widgets, a good that benefits consumers all over the world.

What are the examples of positive externality?

A positive externality is a benefit of producing or consuming a product. For example, education is a positive externality of school because people learn and develop skills for careers and their lives. In comparison, negative externalities are a cost of production or consumption.

Which of the following is a positive externality?

Research and development (R&D) conducted by a company can be a positive externality. R&D increases the private profits of a company but also has the added benefit of increasing the general level of knowledge within a society. Similarly, the emphasis on education is also a positive externality.

What are the 4 types of externalities?

In economics, there are four different types of externalities: positive consumption and positive production, and negative consumption and negative production externalities. As implied by their names, positive externalities generally have a positive effect, while negative ones have the opposite impact.