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1、TheEconomicsofSmokingJB/SH2200byPierreLemieux1.Allhumanactivitiescarrycoststhathavetobeweighedagainsttheirbenefits.Risktolimborlifeismerelyatypeofcostthatwilloccurwithaprobabilitylowerthanonebuthigherthanzero.EconomistKipViscusireportsthat,intheU.S.,theannualdeathriskfromm
2、otorvehicleaccidentsis1/5,000(1in5,000).InFrance,115,000skiersareinjuredeveryyear,andmorethan50killed.Inatypicalyear,390Canadiansdrown,andlightningkills5.Individualspresumablytakerisksintoaccountwhentheymakechoices.Theybelievethatthepleasureofdriving,skiing,swimming,orwalk
3、ingoutweighstherisk;otherwise,theydon'tengageinsuchactivities.2.Whydoesthestatetryandpersuadeindividualstoquitsmoking,butnotskiing?Whydowehearaboutthe"socialcostofsmoking"—$130billionperyearintheU.S.,accordingtoa1998Treasurystudy—butnotaboutthesocialcostofdrivingorswimming
4、?Whatdowemeanby"socialcost"?Weshallseethat,ontheseissues,economistsgenerallyarriveatconclusionsoppositetothoseofthePublicHealthapproach—i.e.,theapproachofthemedicalspecialistsandgovernmentorganizationsofwhichwehearsomuchinpopulardiscourseandthemedia.EconomicsVersusPublicHe
5、alth3.BeforewelookatthemainPublicHealthargumentsandtheeconomiccounterarguments,let'shaveafirstlookathowthetwoapproachesdifferonthebasicconceptsofbenefitsandcosts.4.Economicsstartswithsubjectiveindividualpreferences.Individualswhosmoketobaccorevealthattheygainnet"utility"(o
6、rsatisfaction)fromthisconsumption.Theriskycharacterofmanyactivities—whethersmoking,drivingcars,orskydiving—doesnotchangethisconclusion,asthedemandthateachconsumerbringstothemarketincludeshisestimatesofsuchnon-pricecosts.Economictheorydemonstratesthat,givencertainconditions
7、,freemarketsareefficient;i.e.,theyleadtothesociallyoptimalallocationofresources.5.ThePublicHealthschooladoptsaradicallydifferentmethodology.Startingfromtheobservationthatsmokingisbadforthesmoker'shealth,itgoesontoconcludethatindividualsdonotderivebenefitsfromsmoking.Anti-s
8、mokingactivistScottBallinasserts:"Thereisnopositiveaspectto[smoking].Theproducthasnopoten
