[[{“value”:”When people criticize cars, you often hear it mentioned that many people die in road accidents, many more are injured, and so on. All that is true, dangerous driving does represent a negative externality on others, and it implies that roadway reforms should be undertaken. Still, the point remains that, for those who choose to
The post Sometimes people overrate “marginal value” and underrate “average value” appeared first on Marginal REVOLUTION.”}]]
When people criticize cars, you often hear it mentioned that many people die in road accidents, many more are injured, and so on. All that is true, dangerous driving does represent a negative externality on others, and it implies that roadway reforms should be undertaken.
Still, the point remains that, for those who choose to drive, the average return to driving is higher than the average return to whatever the alternative was. The network of roads and driving still is making those individuals better off.
If anything, noting the negative externality may imply that especially large improvements are possible for the driving experience.
You also can note that moving into a large city may benefit other urban residents, through density externalities. The opera scene will get better, and so on.
Still, the net American flow is toward the suburbs. That implies for most movers the average returns of suburban life are higher.
Many urbanists focus on various externalities from urban and suburban life, positive and negative accordingly. They are a bit loathe to admit where the average returns are highest for a growing number of Americans.
At the macro scale, perhaps we should be favoring the suburbs. If, in some far-off part of the state, you could open up a new city, or some new suburbs, the suburban option might boost welfare more. Even if there are positive net externalities to urban density, and some negative externalitlies from suburban life.
Yes, the marginal revolution blah blah blah. But do not forget the averages!
The post Sometimes people overrate “marginal value” and underrate “average value” appeared first on Marginal REVOLUTION.
Economics, Uncategorized
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