"They (social costs) are damages or diseconomies sustained by the economy in general, which under different institutional conditions could be avoided. [. . .] if these costs were inevitable under any kind of institutional arrangement they would not really present a special theoretical problem. [. . .] to reveal their origin, the study of social costs must always be an institutional analysis. Such an analysis raises inevitably the question of institutional reform and policy."
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Original Language: English
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K. William Kapp, The Social Costs of Private Enterprise. New York: Schocken Books, 1971, p. 186.
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Social cost
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