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The purpose of this paper is to characterize that the marginal social cost of public funds and to estimate the response of labor supply to these publicly provided goods, and simulate the marginal social cost of cash‐cum‐in‐kind transfers (MSCKT) for Brazil.

The paper provides a theoretical model based on Wildasin to characterize the marginal social cost of public funds. Next it estimates using instrumental variables approach the variables necessary to calibrate our theoretical model.

The marginal social cost of public funds depends on the relation between labor supply and the cash‐cum‐in‐kind transfers. Last, the simulations suggest that MSCKT can increase up to 12.4 percent if compared with cases in which is assumed ordinary independence between labor and the bundle of goods provided by the public sector.

Further panel data experiments based on municipal public finance data should be conducted in order to circumvent the agents' heterogeneity problem inherent in cross section analysis – and individuals' labor supply response could be more sensitive at this data level. Finally, such cost‐benefit analysis makes more sense when a specific project is considered and therefore its effects on the taxed good can be clearly estimated leading to a more reliable estimative of the marginal social cost of funding that project.

Governments should take the actual social cost of public policies into consideration before undertaking any new project.

The paper is useful to characterize the marginal social cost of public funds, estimate the necessary parameters and, last, to calibrate its correspondent using Brazilian data.

Environmental economics has typically adopted two approaches to the demonstration of the optimal level of pollution. The first superimposes a marginal pollution cost (MPC) function on the traditional model of the profit maximising firm and demonstrates that Pareto optimality requires the output price to be set equal to marginal social cost (MSC), defined as the sum or marginal private cost (MC) and marginal pollution cost. The second looks at the marginal pollution cost and compares it to the marginal cost of pollution control (MPCC). The optimum in this approach then exists when marginal pollution cost equals marginal cost of pollution control.

The paper is devoted to the question of how to allocate a given educational budget. Alternative avenues of expenditure on post‐secondary education are treated as investment projects and their benefit‐cost ratios are compared. The analysis is essentially static and is based on two investigations carried out by the author, one in Canada, the other in the United Kingdom. The paper is organised into three sections. The first discusses the methodology underlying the two detailed studies. The second presents conclusions on particular aspects of the general problem of allocating resources within formal education, and is divided into four parts: the balance between private and social costs and benefits, between academic levels of education, between types of education and between male and female education. The final section of the paper contains four more general points and emphasises our ignorance in much of this area.

The purpose of this paper is to examine the externalities in social environmental accounting.

The paper is based on the fundamental research that is related to inductive accounting theory and uses scientific methods for identification of theoretical and practical difficulties of recognizing the externalities in social environmental accounting.

The main finding of the paper is that the information portfolio for the assessment of the externalities will contribute to the accurate estimation of the accounting offer and to the objective judgment of the requested information of this kind within the global performance management. This feat will allow construction of a pertinent informational base concerning the externalities, for integration of the external social costs into the conventional accounting model with a view to smoothly substantiating the socioeconomic and environmental policies.

This paper focuses on designing a social arrangement that, in the presence of externalities, can offer an optimal allocation of resources and thus a maximization of welfare for Romanian companies.

The paper helps put the organization in a stronger competitive position in relation to firms that apply only conventional accounting and is not extensively and creatively in using the outcomes of expanding social environmental accounting in its decision making.

The purpose of this paper is to recognise and provide an approach to estimate the value of an institution that produces a public good to the wealth of a nation. Specifically, the authors value utilitarian justice.

The paper employs the classical economic theories of crime and shadow pricing to estimate the total economic value and shadow prices or social productivity of police and higher court deterrence. These measures are estimated using the definitions provided by Dasgupta and by re-engineering key deterrence elasticity estimates gleaned from Australian econometric studies.

The empirical findings suggest a relatively high social value for police and higher court deterrence. Notwithstanding, addressing socio-economic disadvantage is likely to prevent more subsequent offences than directing more resources to the operation of the criminal justice system.

The key limitations involve the sensitivity of the estimates to error. Further work is required on all the estimates in the model and in particular the social costs of the serious offences. The next step is to estimate the opportunity cost of supplying police and court deterrence. The cost estimate can then be combined with the estimates of social benefits to estimate a benefit-cost ratio. The model in broad terms demonstrates a way forward to estimating the economic value of and the social productivity of the criminal justice system. The provision of retributive justice is also ignored in this contribution. This requires a separate analysis.

The social implications are that there appears a way to both justify and evaluate the criminal justice system and this methodology may be applied to the operation of other public services.

The originality of this paper lies in suggesting a method to solve the valuation problem for the jointly produced public goods of the higher courts and police.

The recent interconnection and trade of electricity between NSW and Victoria is likely to exacerbate any misallocation of resources due to inefficient pricing. The aim of this article is to investigate the likely divergence between electricity generation costs using current market prices of coal and natural gas, and those when coal and natural gas are priced efficiently. To do so, the paper applies the concept of full social cost pricing to five different generation technologies in the two states. It concludes that the current movement to privatisation and interconnection in the electricity sector, while it may promote pricing closer to marginal private costs, will not result in efficient outcomes in the presence of external costs and the different tax regimes which currently apply to each generation fuel and in each state.

Macro goals: To alert the telecommunications policy community to the emergence of persistent online worlds as a communications and policy issue. Also to provide game industry decisionmakers with solid economic research on which to base policy decisions. Third, to connect these two communities to each other, for mutual benefit. Micro goals: to conduct a solid cost‐benefit analysis of a knotty problem in game economics: what to do about people who break the rules and use real money to buy game items (swords, wands, gold pieces, etc.)

Traditional cost‐benefit analysis. Consumer surplus analysis of externality effects, with a parameterized estimate of effects sizes.

Real‐money trading acts as a negative externality on the game subscription market. Seems likely to amount to several million dollars per 100,000 users per year.

The effects sizes are simulated only. More data from the game industry are needed before one can put a solid dollar estimate on them. Also, much of the material in the paper had to be really elementary in order for the results to make sense for both policy economists and game industry analysts.

The analysis indicates a prima facie case for public policy intervention to help shield synthetic worlds from the deleterious effects of the global gold farming industry.

Interest in real‐money trade in gaming is growing, as indicated by the extent of online discussion by gaming scholars. Despite this, the literature on the economic and policy issues raised by the topic is limited. The article is an original piece of work that takes understanding forward.

Concern over the cost of excessive media coverage has increased in recent years. This paper offers an explanation of excessive coverage as an application of the tragedy of the commons, resulting from a lack of property rights over a story. News organizations consider only their private costs in covering a story, not the external costs of lower quality of overall coverage and invasion of privacy. However, restricting access to a story can also facilitate censorship. This paper consider means of limiting access which do not compromise journalistic freedom, specifically examining the parallel to tradeable discharge permits in environmental economics.

The term “social economics” has been in currency ever since J.S. Mill coined the phrase to cover the inductive study of the groups and social unions that man forms, guided by the principle of social altruism, to conduct his economic relationships. Although Mill rejected this approach in favour of deductive, self‐interested political economy, others, notably Wieser, J.M. Clark and Weber, have all tried to enact their versions of social economics in the centre stage. Even though Weber's theories became prominent in sociology, and both Clark and Wieser have their disciples, the study and theoretical development of social economics has remained at the periphery, making little impact upon the unswaying hold of the neo‐classical microeconomic orthodoxy.

This paper focuses on Ṣukūk issuance determinants in Gulf Cooperation Council (GCC) countries. Given the dual characteristic of debt and equity of Ṣukūk as well as their unique benefits of social responsibility, the author questions whether the theories of capital structure, the trade-off and the pecking order are able to well explain the Ṣukūk issuance.

First, the author verifies these theories using capital structure determinants and regresses the Ṣukūk change on these determinants. Second, the author tests the trade-off theory with the target debt model and third, verifies the pecking order theory using the fund flow deficit model.

The empirical results show that capital structure determinants fail to explain both theories. The author confirms that the Ṣukūk change is significatively linked to the deviation from a Ṣukūk target. So, issuing firms balance the marginal costs of Ṣukūk and their benefits of religiosity and social responsibility toward a target debt. The author finds no evidence of the pecking order theory.

This study contributes to corporate finance theory and corporate social responsibility. It verifies if capital structure theories proved in conventional financing can well explain Islamic bonds issuance given their social responsibility benefits.

Managers and investors would pay attention to the social factors explaining Ṣukūk issuance in their finance and investment decisions. They would be enhanced to use this financing tool knowing its social unique benefits. This also should encourage governments to enhance this socially responsible financing. Rating agencies would be motivated to evaluate Ṣukūk and firms would improve the quality and relevance of disclosure to get the best rating.

The author highlights the social factors explaining Ṣukūk issuance and enhances corporate social responsibility (CSR).

The author extends the few literature testing capital structure theories for Islamic bonds and highlights the specific social responsible features of Ṣukūk that would bridge their issuance to capital structure theories. So the author enhances the concept of Islamic CSR. Tying capital structure theories to CSR would also help developing Islamic finance theory as a unique social responsible framework.