Fair points, I agree that taxation has a lower bar. The bimodal point was illustrative, you could take some other individual characteristics as proxies for the extent of internalities (e.g. education) and weight people by that when estimating.
Fair points, I agree that taxation has a lower bar. The bimodal point was illustrative, you could take some other individual characteristics as proxies for the extent of internalities (e.g. education) and weight people by that when estimating.