[2] His reputation was affected adversely by influential economic writers who used his work as the basis on which to define their own opposing views.

He won the Chancellor's Gold Medal for English Verse in 1899, and the Cobden (1901), Burney (1901), and Adam Smith Prizes (1903), and made his mark in the Cambridge Union Society, of which he was President in 1900.

He devoted himself to exploring the various departments of economic doctrine, and as a result published the works on which his worldwide reputation rests.

In 1909 he wrote an essay[6] in favour of Land Value Taxation, likely to be interpreted as support for Lloyd George's People's Budget.

The Pigou Club, named in his honour, is an association of modern economists who support the idea of a carbon tax to address the problem of climate change.

[2] Sticky wages are when workers’ earnings don’t adjust quickly to changes in labour market conditions.

[9] Pigou’s contributions to solving unemployment serve as a basic foundation for understanding the phenomena of labor market externalities.

However, Pigou also notes that there is another type of unemployment that emerges not because people are unwilling to work at market wages but because employers have lower demand for labor.

This new factor of unemployment, Pigou writes, could be solved with subsidies provided by the government to industries suffering the most, such as manufacturing.

One of his early acts was to provide private financial support for John Maynard Keynes to work on probability theory.

[17] Pigou and Keynes had great mutual affection and regard for each other, and their intellectual differences never put their personal friendship seriously in jeopardy.

Keynes states that "[Pigou] is unable to devise any satisfactory formula to evaluate new equipment against old when, owing to changes in technique, the two are not identical.

In later years he withdrew from national affairs and devoted himself to more academic economics and writing weighty letters to The Times on problems of the day.