Welfare economics of eradication Each case of a disease causes negative externalities Each vaccination creates positive externalities Pigovian taxes on disease The classic remedy for negative externalities In this context,that would mean taxes on the sick when they venture out in public and imperil susceptible people Pigovian subsidies for vaccines Much more palatable in this context Used successfully in many instances (see Nicaragua previous slide) ▣Coasian approach How can we change property rights to ensure more vaccinations? Solution:people do not have a property right to remain unvaccinated Example:enrollment in school requires vaccination record Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Welfare economics of eradication  Each case of a disease causes negative externalities  Each vaccination creates positive externalities  Pigovian taxes on disease  The classic remedy for negative externalities  In this context, that would mean taxes on the sick when they venture out in public and imperil susceptible people  Pigovian subsidies for vaccines  Much more palatable in this context  Used successfully in many instances (see Nicaragua previous slide)  Coasian approach  How can we change property rights to ensure more vaccinations?  Solution: people do not have a property right to remain unvaccinated  Example: enrollment in school requires vaccination record