Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
E
- Externality Correction
- A policy intervention, such as a Pigouvian tax or subsidy, intended to align private incentives with the true social cost or benefit of an activity.
P
- Pigouvian Tax
- A tax on an activity that generates negative externalities, set in principle equal to the external cost not borne by the private decision-maker.