List of Contributors
Preface
Part I Introduction
Part II The Nature of Externalities
On the Nature of Externalities
I. Introduction
II. Externality as Absence of Markets
III. Publicness of External Diseconomies
IV. Exclusion at a Cost
V. Pecuniary Externalities
VI. The Definition of Externalities
VII. Remedies
References
Discussion
I. What Are Externalities?
II. Some Theoretical Observations
III. A Discussion of Remedies
IV. Conclusion
References
The Problem of Social Cost: Fifteen Years Later
I. Introduction
II. The Coase Theorem
III. Transactions Costs and the Definition of Externality
IV. Optimal Liability
V. Transactions Costs and the Incidence of Liability
References
Discussion
References
Part III Externalities in Collective and Decentralized Decision Making
Externality Taxes and Subsidies
I. The Model
II. An Optimal Tax-Subsidy Algorithm
III. Theorems on Taxes and Subsidies
IV. Conclusions
References
Discussion
References
Information, Incentives, and the Internalization of Production Externalities
I. Introduction
II. The Coordination of External Decisions of Many Firms
III. A General Solution of the Coordination Problem
Appendix: On the Uniqueness of the Truthful Message Equilibrium
References
Discussion
Reference
A Generalized Cost Allocation Scheme
I. Decomposition of a Game
II. Generalized Value of a Game
III. Definition of Weights
IV. Incremental Values
V. Value, Imputations, and the Core
VI. A Cost Allocation Example
VII. Conclusions
References
Discussion
Part IV Externalities in General Equilibrium
Collective Choice and the Lindahl Allocation Method
Introduction
I.
II. The Existence of Lindahl Equilibrium
III. Special Lindahl Equilibria
IV.
V.
VI. Conclusion
References
Discussion
References
Pairwise Optimality, Multilateral Optimality, and Efficiency with and without Externalities
I. Introduction
II. The General Equivalence Theorem for Exchange with Externalities
III. Production-Exchange Economics
IV. Interindustry Production
V. An Example of Nonequivalence
VI. Pareto Optimality for Societies with Bilateral Externalities
VII. Pareto Optimality with Multilateral Externalities
References
Discussion
Noncooperative General Exchange
I. Background
II. A New Approach with Applications to Externalities
III. The Basic Model
IV. The Edgeworth Box
V. Variants
VI. Two Theorems
References
Discussion
Part V Measurements of Externalities
The Measurement of Individual Congestion Costs: An Economic Application to Wilderness Recreation
I. Introduction
II. A Generalized Model for the Measurement of Congestion Effects
III. Experimental Design and Sampling
IV. Estimated Willingness to Pay Functions
V. Conclusions
References
Discussion
An Economic Model of Airport Noise Pollution in an Urban Environment
I. Scaling Individual Reaction to Noise
II. The Demand for Housing and the Implicit Demand for Quiet
III. Equilibrium in the Housing Market
IV. The Empirical Model
References
Discussion
Fiscal Externalities, Taxes, and Suburbanization
I. Introduction
II. An Urban Model with Property Taxes
III. Empirical Results
IV. Conclusion
Appendix: Notation
References
Discussion
References
Externality Production Functions
I. The Theory of Externalities in Production
II. Framework for Estimation of Externality Production Function Specification of the Generalized Joint Production Model for Empirical Estimation
References
Discussion
Index