Arthur Pigou

Arthur Pigou (1877-1959) was a prominent British economist known for his work in welfare economics and the theory of externalities. His influential book, 'The Economics of Welfare,' laid the groundwork for the welfare state and introduced concepts such as the Pigovian tax, which suggests that taxes should be levied on activities that generate negative externalities to improve social welfare. Pigou's ideas have had a lasting impact on economic policy and the understanding of market failures, making him a key figure in the evolution of economic thought.