efficiency through taxes or liability. It is interesting that the economist of Chicago, who has elaborated on the renowned … compensation of the victim. To Pigou’s way of thinking, this is a strict liability rule. Coase states that the damage is caused by … 1960, Coase’s theory has been developed and has become a pillar of tort law and economics. Pigou proposed a tax as an …

spending and taxation decisions are made by nonbenevolent politicians. As in the recent so-called Second Generation Theory (SGT …